Deel Accused of Money Laundering, Sanctions Failures in Lawsuit

Fast-growing human resources and payroll startup Deel has been dragged into a dispute involving a Florida Ponzi scheme, in the latest legal action connecting the firm to fraudulent or illegal movement of money.

In a lawsuit filed in federal court in Florida last week, Deel was accused of transferring money for a Ponzi operation the Securities and Exchange Commission says ripped off elderly church members. The complaint, filed by the receiver for victims of the scheme, claims Deel didn’t have proper licenses or anti–money-laundering and sanctions controls in place to prevent crooks from using its payment services.