The US Postal Inspection Service (USPIS) announced a disbursement of more than $115 million dollars for 38,889 victims in connection with fraud schemes prosecuted by MoneyGram International Inc. (MoneyGram).
USPIS noted that victims, many of whom are seniors, will recover the full amount of their losses.
“This distribution of $115.8 million to nearly 40,000 victims, each of whom is being fully compensated for their losses, demonstrates the Department of Justice’s continued commitment to helping victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Department of Justice. Criminal Division.
“This is an example of how the department will use all the tools at its disposal, including in corporate criminal matters, to bring justice to the victimsPolite added.
MoneyGram had a Deferred Prosecution Agreement (DPA) with the Department of Justice in 2012 for not having an effective anti-money laundering program that aided and abetted fraud schemes that often targeted the elderly and other vulnerable groups.
Wire transfer services are popular with scammers because electronic transactions, once processed, are generally impossible to reverse.
In November 2018, MoneyGram agreed to extend its deferred prosecution agreement and implemented additional enhanced compliance obligations and lost $125 million, representing the volume of consumer fraud transactions.
Now the USPIS is using these forfeited funds to compensate victims of fraud through the remission process.
“This $115 million outlay provides a measure of financial justice for the many victims who were wronged by scammers who took advantage of them”said Inspector in Charge Christopher A. Nielsen of the USPIS Philadelphia Division.
“MoneyGram violated an FTC order by allowing them to defraud their customers,” Samuel Levine, director of the Bureau of Consumer Protection, said at the time. “The FTC is pleased to work with our law enforcement partners to provide refunds to claimants. Other companies that facilitate fraud and ignore FTC orders should expect to face similar consequences.”
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