MoneyGram Forfeits $100 Million to Resolve AML, Wire Fraud Probes - Corruption Currents - WSJ


MoneyGram International agreed on Friday to forfeit $100 million and enter into a deferred-prosecution agreement with the Justice Department, admitting that it failed to maintain an effective anti-money laundering program and to criminally aiding and abetting wire fraud.

The Dallas-based global money-services business admitted in court documents filed in the Middle District of Pennsylvania it was involved in consumer fraud phishing schemes conducted by corrupt MoneyGram agents and others that defrauded tens of thousands of victims in the U.S.

The scams, which took place from 2004 until 2009 according to the court documents, generally targeted the elderly and other vulnerable groups, and included posing as victims’ relatives in urgent need of money and falsely promising large cash prizes, various high-ticket items on sale online at deep discounts or job opportunities as a secret shopper.

MoneyGram failed to fire agents suspected to be involved in the scams.