Overview of the Allegations
Payvision, a payment processing company and former subsidiary of ING Group, has come under scrutiny in connection with its historical business relationships with individuals later accused of operating fraudulent investment schemes. One such individual was German businessman Uwe Lenhoff, who passed away while in custody awaiting formal indictment. Prosecutors in Germany had charged Lenhoff with managing a cybercrime operation, engaging in investment fraud, and participating in money laundering activities.
Business Ties and Legal Proceedings
Uwe Lenhoff was known to be a close associate of Payvision’s founder and former CEO, Rudolf Booker. According to available case information, Lenhoff’s operations used Payvision’s services to process payments for various online investment platforms. These associations have drawn attention due to the scope and nature of the alleged frauds.
Additionally, Israeli national Gal Barak, formerly associated with Lenhoff, also relied on Payvision’s services for payment processing. Barak was convicted in Austria in September 2020 as part of the so-called #ViennaCybercrimeTrials. He was sentenced to four years in prison and ordered to make restitution to defrauded investors.
Context of the Acquisition by ING
In 2018, ING Group acquired a 75% stake in Payvision at a company valuation of €360 million. The acquisition aimed to expand ING’s footprint in the fintech and payment processing sector. Eventually, ING acquired full ownership of Payvision, and the original founders, including Rudolf Booker, exited the company by the end of April 2020. Market rumors suggest that the founding team may have received approximately €90 million for their remaining shares.
Implications and Ongoing Questions
The core of the controversy lies in whether Payvision and its leadership knowingly processed payments linked to fraudulent schemes for business advantage. Should it be demonstrated that these relationships were maintained in full awareness of the nature of the operations involved, the reputational and legal consequences could be significant.
The situation continues to develop, and additional legal or regulatory assessments may follow as more information comes to light.