May 2, 2022 – Receiver Submits Proposed $4.2 million Settlement with Payment Processor to Court for Approval

Shortly after his appointment, the Receiver began investigating the defendants’ relationship with third parties, including companies which acted as payment processors for the defendant entities.  The Receiver obtained and reviewed documents, interviewed witnesses, and conducted a thorough examination of the communications between the defendants and vendors.  Based on the evidence revealed in this process, the Receiver made a demand for the return of all fees paid to one payment processor.  After extensive negotiations, the Receiver and payment processor agreed to a settlement in which the payment processor has agreed to pay the estate $4.2 million to resolve all claims.  This settlement has been filed with the Court for approval.

January 5, 2022 – Permanent Injunction Issued

The Court has issued Final Order of Permanent Injunction against Defendants.  (The Order is linked on the right.)

December 20, 2021 – Receiver’s Second Interim Report

The Receiver has filed his Second Interim Report with the Court.  (The report is linked on the right.)  In this report, the Receiver updates the Court on the status of the receivership, investigation of potential third-party claims and cryptocurrency, and provides an accounting of the receivership estate.

October 19, 2021 – Initial Status Report

The Receiver has filed his Initial Status Report with the Court.  (The report is linked on the right.)  The report describes the business operations, summarizes witness interviews and document review, and describes receivership activities.

September 2, 2021 – Complaint, TRO, Appointment of Receiver, and Preliminary Injunction (links to documents on right)

On August 13, 2021, the United States Department of Justice (“DOJ”) filed a civil lawsuit against a transnational group engaged in criminal wire and bank fraud in violation of 18 U.S.C. §§ 1343, 1344, and 1349.  DOJ alleged the defendants unlawfully purchased consumer identity and banking information and then processed unauthorized ACH debits without the consumers’ knowledge or consent.

On August 20, 2021, the United States District Court in Los Angeles entered a Temporary Restraining Order (“TRO”) which prohibits any further unlawful conduct and appointed Thomas McNamara of Regulatory Resolutions as Temporary Receiver to take possession and control of defendants Internet Transaction Services, Inc., Intertrans.com Inc., and related companies.  The Temporary Receiver suspended the operations of these companies and is now conducting a review of the businesses.

The parties named as defendants in the lawsuit were:

Internet Transaction Services, Inc.
Intertrans.com, Inc.
Be A Kloud LLC
Blue Water LLC
CBX International, Inc.
Delta Cloud LLC
Dollar Web Sales LLC
Ecloud Secure LLC
Eastgate View LLC
I-Support Group LLC
My Kloud Box LLC
Newagecloudservices LLC
NRG Support LLC
Silver Safe Box LLC
Silver Safe Box Inc.
Storage VPN LLC
VPN Me Now LLC

The individuals who controlled these companies were also named as defendants in the lawsuit.  They include:

Edward Courdy
Guy Benoit
Jennifer Ash
Eric Bauer
Randy Grabeel
Steven Morgan
John Murphy
Evelyn Seidman
Harold Sobel
Jenny Sullivan
Debra Vogel
Michael Young

On September 2, 2021, the Court issued a Preliminary Injunction, which confirmed the Receiver’s appointment and continued the terms of the TRO.  Copies of the DOJ’s Complaint and the Preliminary Injunction can be found in the Documents section of this webpage.

If you believe the defendants improperly made an ACH charge against your bank account, we recommend you immediately contact your bank.  We additionally would advise you to inform the bank that your account information has been compromised and seek their assistance to guard against any future unauthorized charges.

We will post periodic updates to this website.  If you have additional questions, please send them to info@regulatoryresolutions.com.