New York, NY: The money transfer company MoneyGram has agreed to forfeit $100 million and has admitted to wire fraud, settling one of the biggest money laundering cases ever brought by the Justice Department.
According to documents filed on Friday, November 9, 2012, MoneyGram admitted that it failed to maintain an effective anti-money laundering program. The scams involved MoneyGram agents tricking customers into wiring money to the agents, who posed as relatives promising large cash prizes. MoneyGram reportedly knew about this, and the victims of the fraud--numbering in the thousands--complained to MoneyGram. However, the company took no action to stop it, instead they processed the transactions for those agents.
Customers reported fraud that added up to at least $100 million, the Justice Department said, and the money from the settlement will be used to compensate the victims.