The U.S. Federal Trade Commission filed a lawsuit on June 17 against one of Ukraine’s largest IT firms for allegedly defrauding its customers through "deceptive subscription schemes."A federal court has temporarily halted the operations of 15 corporations and eight individuals under the Kyiv-based firm Genesis Tech, which the FTC said in a public statement deceived consumers with hidden costs, recurring charges, and convoluted mechanisms to cancel subscriptions.The FTC claims that Genesis Tech controls a network of entities registered in Cyprus that operate in Ukraine and access U.S. payment platforms through entities registered in Delaware.To avoid fraud monitoring programs, Genesis Tech and its affiliate firms continually register new companies, open new bank accounts, and produce new products, the FTC said."The result is an ever-evolving web of Cyprus and Delaware shell companies that allows Genesis Tech and its subsidiaries to continue defrauding U.S. consumers and routing their ill-gotten gains overseas," the FTC wrote in the public statement on its website."Together, Genesis Tech and its subsidiaries are able to hide their true identities from consumers and attempt to hide their assets by channeling ill-gotten gains through cross-border transfers among corporate affiliates."
US trade regulator accuses billion dollar Ukrainian IT giant of fraud
A federal court has temporarily halted the operations of 15 corporations and eight individuals under the Kyiv-based firm Genesis Tech, which the U.S. Federal Trade Commission said in a public statement deceived consumers with hidden costs, recurring charges, and convoluted mechanisms to cancel subscriptions.
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