Two People Plead Guilty in a Boston Court For $150M Allied Wallet Fraud Case

Two United States citizens have pleaded guilty for their role in the massive $150 million Allied Wallet's fraud case. This fraud case focused on fooling banks into processing payments from unregulated online gaming/gambling platforms and more. 

The US Citizens Charged With the Crime

The two individuals who pleaded guilty were Mohammad “Moe” Diab, 48, of Glendale, California, and Amy Rountree, 41, of Logan, Utah. 

Both Diab and Rountree pleaded guilty to a single count of bank fraud conspiracy. This occurred at a federal court in Boston this past Wednesday. Now, they two each face up to 30 years in prison. 

Diab was the chief operating officer, while Rountree was the VP of operations. They were originally arrested in August 2021. 

Allied Wallet Involved in “Transaction Washing”

The fraudulent practice Allied Wallet was involved in is known as “transaction washing.” This practice takes digital transactions of high-risk merchants and makes them appear as safe payments. 

Allied tricked banks into authorizing unregulated online gambling transactions, online pharmaceuticals, payday lending, debt relief, and more, per the prosecutors of the case. 

According to the Department of Justice, they accomplished the scheme “through, among other steps, creating shell companies, designing fake websites that purported to sell low-risk retail and home goods, and using industry-standard codes that miscategorized the true nature of the transactions.”

Ahmad “Andy” Khawaja Arrest and Campaign Donations

Allied Wallet CEO Andy Khawaja was arrested in Lithuania in September 2020 via international warrant. When he was arrested, United States officials asked for him to remain in custody during a pending extradition. 

According to the Justice Department, he was sentenced in July 2023 for a $3.5 million “foreign conduit contribution scheme.”

We’ll continue to monitor the fallout of this case.