By Harvey Silverman, Contributor, Golf Business | Silverback Golf Marketing
At long last, after three years and two federal court mistrials, the fraud perpetrated on many golf course operators whose payment processor was ETS has reached a legal conclusion. On Oct. 6, 2025, Messrs. Edward Walsh Vaughan, former ETS CEO, and Hadi Akkad, former ETS Executive Vice President, entered negotiated guilty pleas to a single charge of conspiracy to commit fraud, and the forfeiture of $7.63 million in cash.
Both men received sentences of 36 months’ probation, deviating from the guideline imprisonment ranges of 188-235 months for Vaughan, and 135-168 months for Akkad.
The men were initially indicted in 2022 on charges of wire fraud and money laundering. The charges stem from their involvement as executives with Electronic Transactions Systems Corporation (ETS), a payment processor popular with many NGCOA members and countless other non-member golf course businesses.
Federal investigators alleged the ETS management team collected hidden markup fees on nearly 87 million card transactions for approximately 7,000 merchant clients. The City of Sherman, TX, was among the clients and raised concerns about the billing, spurring the investigation. However, after two mistrials, U.S. Department of Justice prosecutors from the Eastern District of Texas filed a new conspiracy-to-fraud charge in July, which led to the negotiated plea agreements.
Prosecutors also alleged the transactions helped inflate the company's value, and when ETS was sold in 2018, Vaughan received $107 million and Akkad received $33 million.
In the agreements, Vaughan agreed to forfeit $5,723,152, and Akkad $1,907,717. Each was ordered to pay a $100,000 fine (jointly assessed), a $100 special assessment, and all court costs. Also, due immediately to the City of Sherman, TX, was $25,638 from Vaughan, and $8,546 from Akkad.
The action allows the men to keep property that had been targeted for forfeiture by federal authorities. The initial forfeiture action involved properties they own in Loudoun County, VA, Washington, DC, and California, as well as luxury vehicles, aircraft, and jewelry.
Restitution will be disbursed pro rata after claim submission, with the timeline based on the claims and court process. The court’s order requires eligible victims to submit claims before funds are distributed. Ronnie Miles, Senior Director of Advocacy for NGCOA, has been in contact with a representative from the U.S. District Court for the Eastern District of Texas to learn how restitution will be distributed to documented victims. That information will be passed along as soon as it is received.
NGCOA thanks Kevin McDonnell, of Claymore Payments, for his work helping to uncover the transaction fee fraud and for becoming a key witness for the government. It’s worth noting the message he and other government witnesses received from the FBI agent in charge of the case. It’s not just a badge and a gun – there is a heart there, too:
“And finally, there is a monument outside of the FBI Laboratory building in Quantico, VA, that says, “Behind every case is a victim – man, woman, or child – and the people who care for them. We dedicate our efforts … to those victims.” That quote has always resonated with me – from the first day I was assigned to investigate this case, I sought the truth, whatever the truth may be. And when the evidence proved beyond a reasonable doubt that crimes had been committed, pursuing justice for the victims, despite setback after setback, was the only option – it was the right thing to do. I will always follow the truth, defend all victims of crime, and do the right thing, so long as I wear this badge.
I recognize the extreme burden this case has been to you, but your repeated cooperation was essential in the pursuit of justice. Thank you for the sacrifices you have made.”
Previous articles documenting the evolution of this story can be seen here and here.