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November 12, 2012

MoneyGram to Pay $100 Million to Settle Fraud Case 
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The money transfer company Money Gram has agreed to establish a $100
million compensation fund as part of a government settlement over fraud
allegations. The company is accused of processing transfers to Money
Gram agents who defrauded customers by posing as family members or
offering cash prizes. The Justice Department said thousands of Money
Gram customers complained, but the company failed to fire the agents it
knew were involved. Money Gram also admitted it failed to maintain an
effective anti-money-laundering program in violation of federal law.

 

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