WASHINGTON, D.C. — MoneyGram International Inc. has reached a $125 million settlement with the U.S. Department of Justice (DOJ) to resolve the breach of a 2012 deferred prosecution agreement (DPA) involving consumer fraud scams, according to the federal government.
As part of the settlement reached with the DOJ, MoneyGram will relinquish $125 million as well as upgrade its anti-fraud and anti-money laundering (AML) compliance programs, the department said.
According to the DOJ, in 2012, MoneyGram was charged with not maintaining its AML program as well as "aiding and abetting wire fraud," and has agreed to a deferred prosecution for five years. The department alleges MoneyGram singled out groups such as the elderly to pretend to be the victim's relative who has an emergency and needs money. The company also promoted huge cash prizes as well as discounted items for sale on the internet which required sending money through the company's "money transfer system," the DOJ said.
MoneyGram's DPA extension includes the Justice Department deferring prosecution for 30 months and the dismissal of charges if the company meets its obligations under the agreement, according to the DOJ.