Flagship Merchant Services, Thousand Oaks, California Fraudulent Set Up of Acct ~ Now Trying to Collect From Me Thousand Oaks California

In August I discovered that Flagship Merchant Services had set up an account in my name that was fraudulent. My business name and EIN had been stolen and combined with the SSN of an 83 year old woman. I notified them immediately and received in return copies of the application. Numerous red flags, as in the birth date was 1929 and the names for the signature and typed names were different. Over $3600 was run through this fraudulent account that I notified them about. Now they are trying to collect that money from me and have sent the account to Collections. They knew it was fraudulent because I had told them and sent them the Police Report I had made…and now, to cover their incompetence in setting up without verifying information (a simple Google search of my name would have indicated the inconsistencies), they are trying to collect from me. Fail. I don’t think there is a low enough rating. I question their ethics, if they even know what the word means.  TheCollection Agent from CrediSolve was rude and mocking of my response and told me I needed a lawyer, suggesting that I should expect a lawsuit.  Really?  When I was the victim and they failed to do their job?  If I had not notified them, this would at least make sense, but I notified them and have the documentation from them, so they knew.