EMO Corp in trouble

EMO Corp, owners of the EMO e-currency are in trouble.

EMO Corp. and officers cannot account for $2.4 million in customer cash

AUSTIN – Texas Attorney General Greg Abbott has obtained an asset freeze and emergency approval for a court-appointed receiver to take over the operations of unlicensed Austin-based online payment service EMO Corp.

The company and its officers, Todd L. Tredeau, Tracey Jones and Nancy C. Humphries cannot fully account for more than $5.4 million that consumers placed into their accounts. The company’s books show they have only $3 million cash on hand, which means EMO cannot account for $2.4 million belonging to its customers. The officers failed to register with the Texas Banking Department and obtain a license as a “money services business,” as required by law.

Media Links

Sample EMO Corp. web pages
Attorney General’s lawsuit against EMO
Temporary restraining order against EMO
Court Stamped copies of above (10 MB)

“These officers must account for their outrageous mismanagement of consumers’ money, which they promised would be secure,” said Attorney General Abbott. “The court’s appointment of a receiver to seize control of this company’s assets will provide an opportunity to determine where this money has gone.”

The company’s Web site, www.emocorp.com, touts the service as a safe way to conduct financial transactions online, as a service to assist consumers who are recent victims of fraud and businesses that handle payrolls.

Consumers who open accounts with online payment services can deposit money into their accounts via credit cards or bank transfers and expect instant access to their accounts. The consumer uses the service to send or receive money to and from other members via electronic transfers. According to information given to the Department of Banking by EMO Corp., the company has a current customer base of 17,000 nationwide, with 6,000 of these in Texas.

The Banking Department denied EMO a license for failure to meet minimum net worth requirements of $500,000 and other statutory requirements. Furthermore, according to the company’s own financial statements presented to the Department of Banking, the company is insolvent.

Upon investigation following the asset freeze, the Attorney General will seek restitution to any consumer harmed by these transactions, as well as civil penalties and attorneys’ fees.

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Oluniyi D. Ajao
Oluniyi D. Ajao is an Internet Entrepreneur and Tech Enthusiast based in South Africa. Follow him on twitter @niyyie for more tech updates.

4 Comments

  1. EMO has been the shining light in an industry that has been marred by scandal and deception. It is painstakingly obvious what is going on here. A payment service that we all could count on for assisting in protecting consumers against fraud and the like has come under scrutiny for only one reason. It has become too successful. Their business model is such, and I use the present tense, knowing who their customers are and verifying their identities is and will be key in continuing to pave the way for all of us to feel safe with their unique services. This is a fishing expedition by the AG’s office of Texas. They do not know what they do and as we all know, will do anything for the almighty $$$. Of course Storm Pay and 12 Daily Pro have a part in this, as well as the INTGold’s of the world. Not surprising that they are/were incorporated in the state if Texas. The good ol boy network is in full bloom here and fighting the good fight is on the horizon. EMO has repeatedly assisted the FBI and SEC in locating known criminals and recovering stolen and laundered funds. FTI consulting, the receiver that has been appointed by the state has been notorious for liquidiating company assets for some time. They do not understand EMO and its business model and will stop at nothing to attain their primary goal, making money for themselves and the state. Ironic, since the AG’s office and the TRO itself states that they are protecting the citizens of the great state of Texas. I implore all who really know what is going on with EMO to join the fight in in not only saving the most legitimate payment processor around, but helping the campaign to retrieve our frozen funds. The longer this pushes forward without a resolution for the customers of EMO, the less likely we will be to recoup any funds at all. Where do you think the money to pay the state appointed attorneys, Fullbright and Jaworski, LLC, FTI Consultants and expenses are coming from? In my opinion, and I express that emphatically, EMO will resurface once again, as the eminent processor. Justice has a price, even for the innocent. Thank you for your time.

  2. I HAVE ..FUNDS..IN AN EMO ACCOUNT. . I WANT TO KNOW WHAT IS THE BEST MOST EFFECTIVE MEANS OF OBTAINING MY FUNDS VIA LEGAL ACTIONS IF NECESSARY,,,

    GIVE ME A REPLAY AND I WOULD GREATLY APPRECIATE IT..

    ROBERT

  3. There is no site, no contact – no nothing. What has happened to our money and when will we get it back.

    This is bullshit. Our money has been stolen without a trace!

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