PayPal Helping The IRS Track Down Tax Cheats

from the so,-please-launder-elsewhere dept

A few years ago, in a widely publicized article, eBay's liaison to law enforcement proudly talked about how the company would hand over all sorts of info to law enforcement if asked (even without a subpoena). So, it shouldn't come as much of a surprise eBay-owned PayPal is helping the IRS track down tax cheats by handing over the identity of customers using PayPal from a variety of well known tax havens. Of course, anyone who thought it was a smart idea to launder money through PayPal probably shouldn't be all that surprised when federal investigators show up on their doorstep.

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  1. identicon
    admin, 7 Nov 2005 @ 11:29am

    Re: No Subject Given

    Another one is the class action lawsuit site:

    Where PayPal agreed to not only release $5million it was holding of people's money, but pay another $9.25million in claims.

    About the $5million... that was money that paypal had frozen from it's customers account and had gone by the 180 day waiting period. PayPal had NOT sent the money to the account holders, despite it clearing all concerns, because, according to PayPal: they didn't ask for it back. Part of the class action lawsuit was that Paypal would voluntarily refund funds held for 180 days without the account holder having to put in a specific request for it.

    Holding people's money for 180 days is bad enough, but what do you call it when they do not release it after the 180 days? The courts call it conversion and it's a crime.

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