Keeping in mind the current dynamics of payment processors worldwide, we at PayPound have decided to share every single news of PSPs and acquirers worldwide who are in the practice of taking merchant funds and disappearing. We have promised ourselves that we will not allow our merchants to suffer losses while the PSPs enjoy themselves at their expense.

These PSPs, no matter how large, have no right to client funds. In this context, we have decided to expose a well-known name in the industry that constantly hides behind other companies and uses them to defraud merchants and their funds.

Mr. David Rosenblum of Liberty Management must be known to 90% of industry veterans. This is the same David who collaborated with the infamous Mr Kotaro Shimogori of the most well-known scamming PSP ICANPAY.

David’s LinkedIn ID:

References :

Reddit: High-Risk Merchant Processor Scam


Mr. David initiated communications through a company called Redfern LLC, introducing a person as a business associate and offering us a payment solution. We were offered bi-weekly payments at 6.5 percent with a 6-day hold. We accepted and began selling because the agreement was lucrative and our merchants could have benefited. 

A dedicated mid was appointed for FX and Crypto merchants, which in turn would be supplemented by individual merchant agreements, applications, and NDAs, all countersigned and with the relevant supporting documents for KYC.

When the payments were due in 10 days, the tactic of postponing payments was used, and we were encouraged to put in more volumes to get the money released. Once a constant flow of 30K USD was established, the mid abruptly stopped down without warning, contacts came to a standstill, and no responses were received.

On chasing David stated that there are compliance concerns for the initial payout. Following several tough discussions, we obtained a report for settlement, which was delayed due to complications with David’s bank. Not surprisingly, there was a holiday period shortly after, and settlements were delayed by two weeks and a half for no reason.

We were paid $7000 and the MID was suspended after the payments outstanding reached over $50,000. There was no chargeback, and we have not explained the suspension. After chasing for at least three weeks, we were told that we would not be paid and that the money would be refunded to the customers. There was no documentation of reimbursements offered, and the consumers’ monies have yet to be returned to their accounts. We’ve been waiting for refunds for more than three months and still haven’t received them.


Mr. David approached us again after the initial MID was suspended, this time with a new solution called Avalanche. He claimed that this option is very trustworthy and that he knows the bank and the contacts there. He told us that he has been utilizing the acquirer’s solutions for years and has been in contact with the owners, who have personal relationships with him.

In his own words “ I can walk into their offices without any appointments, They are like friends.”

He was successful in regaining our trust after convincing us with good rates, DAILY payments, and very low arrears. A dedicated mid was appointed for FX and Crypto merchants, which would be supplemented by individual merchant agreements, applications, and NDAs, all countersigned and with the relevant supporting documents for KYC.

As soon as we hit the payment threshold, the payment delay method was implemented again, and the one-week arrear was changed into a three-week arrear.

After three weeks, we were paid for the first week. The total payment for the first week was $30,000 and was paid in three instalments. The next week the total due payment was $50,000 which was again paid in three different instalments.

Till now we had reached a payment due of more than $270,000 and once again we were told that the bank is having some problems and that the payment will be delayed more.

We stopped the processing of the MID and kept pushing for payments. Two weeks later we were told that the bank has put a penalty on the MID which constitutes $70,000 but there were no transactions provided to us based on which the penalty could have been justified. Again, after negotiating for two weeks when we asked for the rest of the payment, after deducting the penalty, we were told that now the penalty has been increased to $100,000. There was no justification provided, no chargebacks, no flags on the transactions, no refunds, and nothing of the sort that could justify the penalty or the non-payment of funds.

We are now at a crossroads of being owed a total of 270K USD by way of two settlements.

We believe this was part of a scheme coordinated and orchestrated by David Rosenblum and his associates. A mere warning to all on how agents may prey on credible organizations seeking to do the right thing and bring solutions.

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