Technocash shutters in wake of Ponzi scheme allegations

Business Spectator
5:00PM June 25, 2013
Technocash shutters in wake of Ponzi scheme allegations
An Australian funds transfer company alleged to have received funds obtained from a Ponzi scheme has shuttered after banks closed its accounts as a result of the money-laundering accusation, according to The Australian.
The company, Technocash, reportedly shut down over two weeks ago, leaving clients unable to access millions of dollars and some clients reporting they were told to contact the Australian Federal Police over their inability to access funds.
Technocash was named by the US Securities and Exchange Commission (SEC) as a recipient of funds from a Ponzi fraud scheme known as Profitable Sunrise, which is believed to have stolen some $100 million from investors as part of a $US6 billion money laundering scheme, The Australian added.
The scheme was allegedly run by Liberty Reserve. Technocash was accused of holding $36.9 million in three Westpac Banking Corp bank accounts that were alleged to have resulted from criminal activity.
Technocash, which serves as an agent for electronic transfers between businesses and individuals working in multiple currencies, has denied any wrongdoing.
"Clearly a money-moving business can not operate without access to bank accounts," Technocash chief executive Paul Monsted told The Australian.
"We have advised our customers accordingly and are returning customers funds as quickly as possible."