MoneyGram, a global money services business headquartered in Dallas, has agreed to pay $100 million in connection with accusations it intentionally aided and abetted wire fraud and money-laundering for a period of years.
According to court documents, MoneyGram was involved in massive marketing and phishing schemes, perpetrated by corrupt MoneyGram agents and others who defrauded thousands of victims in the United States.
"MoneyGram’s broken corporate culture led the company to privilege profits over everything else," said U.S. Department of Justice Assistant Attorney General 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. In addition to forfeiting $100 million, which will be used to compensate victims, MoneyGram must for the next five years retain a corporate monitor who will report regularly to the Justice Department."
Among those targeted in the cross-borders schemes were senior citizens, who received phone calls from con artists impersonating distressed relatives who needed money to be sent to them, usually in Canada.
Target 5 first profiled this emerging scam back in August of 2009, when Park Ridge’s Jackie Steigerwald shared her tale of a call she received from someone posing as her grandson.
Victims who think they were part of the scheme should visit the Department of Justice website for instructions on how to request compensation.