Through the lawsuit, Edokeda demands judgment against MN, PS and Singh, jointly and separately, on nine counts, and seeks compensatory and punitive damages, plus pre and post-judgment interest and costs for waging the lawsuit.
In the filed complaint in federal district court, Edokeda Trading alleges that Merchant National, Pay Scout and Chief Operating Officer Manpreet Singh have engaged in a pattern of willful misrepresentation, allegedly made fraudulent claims related to the alleged withholding of funds to cover up the defendants intention to misappropriate Edokeda’s funds.
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In the plaintiff’s verified complaint they alleged that in March 2012, Edokeda Trading Ltd. contracted Qwipi, a Chinese company, to provide payment integration software for processing credit card transactions to a merchant account controlled by MN and PS, who in turn agreed to facilitate these transactions and remit funds to Edokeda.
Edokeda further alleges that on September 7, 2012, MN and PS halted the processing of transactions for Edokeda, seized all funds in Edokeda’s merchant account, totaling tens of thousands of dollars, and failed to provide adequate assurances or explanations for their conduct.
Plaintiffs detail in the background allegation that Edokeda immediately demanded an explanation from Singh, who stated that transactions had been put on hold due to supposed chargebacks and that payment would be made shortly.
Edokeda contacted customers but found no instances of chargebacks, as all products had been delivered to the clients’ satisfaction . Some of the chargebacks claimed were dated more than 120 days in the past, and were effectively expired.
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By GlobalDataAlthough Mr. Singh later claimed that chargebacks for non-delivery of products could be effected up to 540 days after the transaction, VISA’s rules set an absolute limit of 180 days . Not surprisingly, Merchant National and Pay Scout refused to provide details on the chargebacks claimed . Edokeda later found evidence linking the acquiring bank with Singh’s companies even though he had previously denied all knowledge of this relationship.
