Oregon broker sentenced for facilitating multimillion-dollar unauthorized debit fraud.
An Oregon man who helped carry out a multimillion-dollar fraud scheme has been sentenced to three years in federal prison after admitting to a role in unauthorized withdrawals from business bank accounts, according to the U.S. Department of Justice (DOJ). Jeremy Todd Briley, 47, of Happy Valley, Oregon, was sentenced after pleading guilty to one count of wire fraud earlier this year. Federal prosecutors said Briley acted as a payment processing broker and knowingly assisted companies that carried out fraudulent transactions against businesses across the U.S.
Court records show that Briley worked with merchants seeking access to payment processing services in the United States. His job involved connecting clients with payment processors capable of handling electronic transactions. While payment processing brokers often serve legitimate businesses, prosecutors said two of Briley’s largest clients were sham companies. According to investigators, the companies claimed to provide online marketing services to businesses. Yet in reality, the organizations were withdrawing money from business bank accounts without authorization. The fraudulent activity resulted in more than $14 million in unauthorized debits.
Officials stated that Briley maintained payment processing relationships for the fake companies between February 2017 and December 2023. During that period, he knew the businesses were engaging in fraudulent activity yet continued helping them access the financial systems needed to process transactions. Authorities said warning signs appeared repeatedly throughout the years.
Payment processors and financial institutions received reports indicating that many of the withdrawals had not been approved by account holders. According to court documents, Briley was made aware of information. Rather than ending the relationships, however, he took steps to conceal the activity. Investigators alleged that Briley helped with covering up the extent of the fraud and assisted efforts to keep payment processing channels open. The government also claimed that he arranged for a payment processor to manipulate return rates associated with the unauthorized debits.
Return rates are closely monitored within the payment processing industry because unusually high numbers can indicate fraud. DOJ officials said the manipulation was designed to make the transactions appear less suspicious and reduce the likelihood that banks would detect the scheme. By helping to maintain access to payment processors, Briley enabled the sham companies to continue withdrawing funds from victims’ accounts for years. The unauthorized transactions affected businesses that had no knowledge of or relationship with the companies taking the money.
In addition to the prison sentence, the court ordered Briley to serve three years of supervised release after completing his incarceration. He was also ordered to hand over $460,000 that authorities identified as proceeds connected to the fraud scheme. The case was investigated by the U.S. Postal Inspection Service and the Federal Deposit Insurance Corporation Office of Inspector General. Federal agencies worked together to examine the movement of funds and the role payment processing relationships played in carrying out the unauthorized withdrawals.
Briley’s sentencing brings to a close a years-long investigation into the scheme and the financial relationships that allowed it to continue. Officials stated that protecting businesses from financial fraud remains a priority and encouraged organizations to closely monitor account activity for any unauthorized transactions.
Sources:
Oregon Payment Processing Broker Sentenced for $14 Million Dollar Wire Fraud Scheme
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