DOJ shuts down CB Surety LLC (December 2023)
At the DOJ's request, a federal court in the Eastern District of California shut down CB Surety LLC, an organization that had set up shell entities on behalf of fraudulent online supplement companies. Many of these shells became the sham merchant accounts Humboldt processed.
The shell entity network was dismantled, cutting off payment processing for the fraud operations.
The case revealed the scale of shell merchant accounts and triggered scrutiny of the processors that handled them.
The CB Surety shutdown is the origin event in this enforcement chain, exposing Humboldt's role in processing for the shell entities.
