Originally Syndicated on June 22, 2024 @ 10:14 am
History of the T1Payments Bankruptcy of Donald Kasdon:
A preliminary bankruptcy request, often known as a ‘skeleton’ voluntary petition, has been filed by Donald Kasdon T1Payments, LLC. Further documents disclosed the financial state of the company, including its assets and liabilities.
One of the other notable things under consideration was a 2019 Porsche Turbo S car, whose initial appraisal was $175,000 but was later revised to $127,000. The total asset valuation of the company was adjusted, bringing the value down from $560,183.65 to $512,183.65.
The Request:
New U Life Corporation (NULC), a merchant and creditor, applied to amend the automatic stay to proceed with the action involving Donald Kasdon T1Payments without enforcing a judgment against it.
The Federal Trade Commission (FTC) filed a federal complaint against Donald Kasdon T1Payments, accusing him of engaging in fraudulent activity and embezzling money connected to payment processing. This federal complaint is the source of the legal conflict.
Several parties opposed the request, including the trustee in charge of overseeing T1 Payment’s bankruptcy procedures.
The argument presented was that since the bankruptcy process already approved NULC’s complaint, any legal action against Donald Kasdon’s T1 payments would be inappropriate and unnecessary.
The Court’s Decision and Consideration:
Several important issues were discussed during the court proceedings, and they are listed as follows:
The application for exemption from the T1 payments of Donald Kasdon:
NULC requested to be released from an automatic stay for two reasons: first, to obtain a resolution regarding Donald Kasdon T1Payments; and second, to pursue its complaint against entities unaffiliated with the bankruptcy proceedings.
However, the judge concluded that there were no reasonable reasons for offering a remedy because the claim made by NULC had already been deemed acceptable, negating the need for the action to proceed.
Release from the Ban on Non-Debtors:
The legal procedure by which a party requests authorization from a court to pursue action against people or corporations who are not directly accountable for a debt in a bankruptcy proceeding is known as relief from stay despite non-debtors.
The judge clarified what the automatic stay covered, saying that it only applied to the insolvency debtor and their belongings, not to the assets of the bankruptcy estate as a whole.
Therefore, any type of remedy is unnecessary because the previously indicated stay does not apply to the individual claims that NULC initiated against parties who were not participating in the debtor’s actions.
Order of Comfort:
The term “comfort order” describes how objects or components are arranged or arranged to encourage comfort and relaxation.
By Section 362(j) of the pertinent legislation, the National University Law Center (NULC) formally requested a “comfort order”. In this request, it was confirmed that NULC was authorized by law to bring legal action against defendants who were not the case’s debtors.
However, the plea for comfort relief was denied because the court found that Section 362(j) did not apply in this specific case.
Conclusion
The court of reviews has refused NULC’s plea to modify the stay for implementation only for judgment, together with its request for a consoling order. The decision upholds the value of the bankruptcy process by eliminating the need for additional legal action on the same issue following the recognition and acceptance of a claim within the bankruptcy’s parameters.
The court’s decision emphasizes the importance of using the insolvency process to resolve claims against a bankrupt corporation inside the framework of the procedure rather than pursuing external litigation.
Donald Kasdon T1Payments is under pressure due to the High-Risk Payment Saga
A negative reputation has been accumulated by Donald Kasdon T1Payments as a result of reports that he withheld cash from merchants under suspicious circumstances, which was then followed by his absence.
Following the problematic trajectory of the firm, which ultimately led to the filing of an insolvency petition in the United States, Kasdon redirected his attention to a new business venture known as Pixxles, which has its headquarters in the United Kingdom.
The company Donald Kasdon T1Payments has been accused of engaging in fraudulent operations by several American merchants. These merchants have particularly implicated key individuals involved with the company, including Donald Kasdon, Debra Karen King (also known as Debra Karen Kaisen), and Amber Fairchild.
It is common for business owners to express their discontent with the sudden closing of their bank accounts and the detention of money, and they commonly attribute these actions to the unexpectedly higher dangers that they were exposed to.
Donald Kasdon T1Payments contend that these precautions constitute vital safeguards that are designed to reduce the risks that are involved with refunds and other penalties.
Despite this, certain shops assert that the funds that are withheld are rarely given. As a result, a handful of these stores have begun legal actions based on charges of fraudulent behavior.
The attached screenshot provides evidence that T1 Payments LLC has declared in its petition for bankruptcy that it is currently dealing with 10 legal actions in the states of Nevada and California. These actions are currently being pursued by the firm.
Because the company has received a substantial number of complaints from its customers, it was obligated to initiate bankruptcy proceedings in the state of Nevada during the first few months of the year. Despite this, the processes of filing for bankruptcy have provided a significant number of problems, as numerous creditors have asserted their claims for recovery.
In the course of this bankruptcy proceeding, around 1,500 creditors have been affected, the majority of them were formerly T1 Payments customers. Many businesses have suffered huge financial losses in recent years.
To provide just a few examples, New U Life Corporation experienced a loss of more than $5.2 million, Hyper Sls Ltd. suffered a loss of roughly $350,000, G Com Pte Ltd. experienced a loss of $231,000, and D.N.G FZE saw a loss of $225,000.
As a result of the theft of funds, the company has suffered significant financial losses, and Donald Kasdon is being held accountable for the scam that he orchestrated. According to what Kasdon has stated, his mother was personally responsible for the theft of a sizeable amount of money from the company’s coffers.
The Obstacles Faced by Pixxles in the United Kingdom
Don Kasdon, Donald Through its partnerships with T1 Payments Ltd. and TGlobal Services Ltd., T1Payments has expanded its market footprint to include the United Kingdom.
In contrast to T1 Payments Ltd., which was deregistered from the Companies House registry, TGlobal Services Ltd. was able to effectively avoid a similar consequence by forming Pixxles Ltd., which was founded by Amber Fairchild, who had previously served as a director at TGlobal Services Ltd.
The Financial Conduct Authority (FCA) granted the company recognition as an electronic money institution, which is indicated by the reference number 927960. As a consequence of this, the corporation has engaged in significant financial interactions. There is still a lack of clarity regarding the origin of these funds; however, it is evident that Pixxles is struggling to deal with growing financial losses.
According to the most recent report that was submitted to the Companies House, Pixxles declared a financial loss of more than 1.1 million British pounds. This marks a significant increase in comparison to the shortfall of 954,463 British pounds that was reported in the previous year.
The company has suffered losses that are greater than three million pounds, even though it has received a substantial inflow of money equivalent to three and a half million pounds. More than that, it is important to point out that Amber Fairchild has financial ties to Pixxles, which have led to large obligations that are still outstanding.
Nevertheless, it is essential to emphasize that the sum of these obligations has been reduced to a little greater number, specifically within the range of around 165,000 British pounds.
The Bottom Line
Don Kasdon, Donald There have been allegations of money laundering involving T1Payments, which is a payment processor that operates in high-risk industries such as the pornographic industry, internet gaming, casinos, and the drug trade. Payvision continues to provide financial assistance to international criminal groups, even though its co-founders have left the company.
T1 Payments is striving to remain out of legal trouble in the United States and is contemplating the possibility of filing for bankruptcy under Chapter 7 as a potential resolution. Meanwhile, in the United Kingdom, the electronic money institution known as Pixxles has made the transition from T1 Payments. Amy Fairchild, who was formerly engaged to Donald Kasdon, is the one in charge of the business. The following link may provide you with additional information on him: Donald Kasdon
