Justice Dept. Fines MoneyGram $100 Million in Fraud Case 

Nov. 21, 2012

Earlier this month, the Department of Justice levied a $100 million fine against money transfer giant MoneyGram for “aiding and abetting wire fraud and failing to maintain an effective money-laundering program.” DoJ attorneys said MoneyGram agents were involved in various phone and Internet-based scams using the MoneyGram network for payment that defrauded tens of thousands of people.

“MoneyGram’s broken corporate culture led the company to privilege profits over everything else,” said Assistant Attorney General Lanny Breuer.  “MoneyGram knowingly turned a blind eye to scam artists and money launderers who used the company to perpetrate fraudulent schemes targeting the elderly and other vulnerable victims.”

According to court documents, MoneyGram was aware that specific agents were involved in fraudulent activity, but recommendations to senior management that those agents be terminated were not approved by the company’s sales department. In 2009 alone—the last year of the fraudulent activity in this case—nearly 20,000 complaints of fraud were filed by MoneyGram customers.