India’s Maebby Technologies has been arrested and indicted by a federal court in California over alleged violations of US anti-money laundering laws.
The company, which had been engaged in the development of a popular app that lets users scan a QR code for money, was accused of providing fake accounts, fraudulent billing and money laundering.
The indictment alleges Maebit had “deliberately and knowingly” created a fraudulent bank account in India.
Maebet said it has not created or issued any accounts in India and the allegations are false.
The charges came on the heels of a similar one issued in January, against the same company, in California.
Maebat Technologies said the charges were baseless and “will not be accepted.”
The US Securities and Exchange Commission (SEC) also launched an investigation into Maebot, but no charges were filed in either case.
In a statement, Maebbit said it would defend itself against the charges and will appeal against the indictment.
The government’s indictment says the company had created “two separate and different accounts for the purpose of engaging in a scheme to defraud the U.S. government.”
The indictment states that the two accounts, one in India that was used to receive and spend US$50,000, and another in the U