A federal judge held payment processor Cliq Inc. and executives in civil contempt for violating an FTC-related court order. The court imposed $6.5 million in sanctions over alleged processing tied to high-risk merchants and insufficient fraud controls.

The FTC announced May 19, 2026 that a federal court held payment processor Cliq Inc. and two of its executives in civil contempt for violating a 2015 court order meant to prevent the company from enabling consumer fraud. The case underscores a common pattern in scam ecosystems: even when fraud originates through fake websites or impersonation, payment “plumbing” allows criminal campaigns to monetize quickly. According to the FTC, the contempt finding centered on unlawfully processing transactions for high-risk merchants despite restrictions imposed by the earlier order. The FTC said the defendants allegedly failed to implement underwriting and screening requirements and did not follow required reporting steps that would help identify and restrict fraudulent activity. The court ultimately imposed $6.5 million in sanctions. The enforcement action signals regulators’ willingness to pursue intermediaries—not only the scammers themselves—when they continue enabling fraud after being told to change practices. For consumers, it serves as a reminder that scams can be supported by legitimate-seeming payment flows that rapidly transfer funds. For businesses and platforms, it highlights the importance of compliance controls that effectively identify risky merchants and prevent repeat violations of court mandates.