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Sunday, November 10, 2024

Justice Department begins second fund distribution compensating fraud scheme victims facilitated by Western Union

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Merrick B. Garland Attorney General at U.S. Department of Justice | Official Website

The Justice Department announced today the commencement of the second distribution of approximately $18.5 million in forfeited funds from Western Union to around 3,000 victims in the United States and abroad. These victims are set to recover the full amount of their losses.

This marks the second distribution in the second phase of the Western Union Remission. The first distribution paid about $40 million to over 25,000 victims. Across two phases, more than $420 million has been distributed to over 175,000 victims who received full compensation for their losses.

The second phase began in March 2022, offering an opportunity for those who had not filed petitions during the first phase to seek remission. The Justice Department continues reviewing petitions and reconsideration requests from affected individuals and anticipates further distributions in coming months.

“Western Union aided and abetted fraud schemes that collectively caused thousands of victims to lose hundreds of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Justice Department has now returned more than $420 million forfeited from Western Union to more than 175,000 victims, who have received full compensation for their losses. The sixth distribution from the Western Union Remission Fund demonstrates yet again that the Criminal Division is committed to using all its authorities to make crime victims whole.”

“The latest distribution of $18.5 million to approximately 3,000 victims again highlights the commitment of our prosecutors and law enforcement partners,” stated U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Western Union allowed fraudsters to carry out schemes against vulnerable people in our society, and we are proud to uphold accountability for those involved in these schemes and ensure proper compensation for the harm that victims suffered.”

“This $18.5 million disbursement to approximately 3,000 victims represents the U.S. Postal Inspection Service’s commitment to American people and many financial fraud victims,” said U.S. Postal Inspector in Charge Christopher Nielsen of USPIS Philadelphia Division. “The Western Union Remission process has now disbursed over $420 million to approximately 175,000 victims."

In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States acknowledging responsibility for criminal conduct including violations of the Bank Secrecy Act and aiding wire fraud, agreeing to forfeit $586 million made available through remission process compensation.

Fraudsters targeted consumers through multiple scams such as grandparent scams where they posed as relatives needing money urgently; lottery scams claiming a large prize requiring fees; and romance scams posing as online love interests requesting funds.

Certain agents at Western Union locations were complicit by failing to suspend or terminate agents processing fraudulent transactions. Fulfillment under DPA led court dismissal motion granting information.

The Asset Forfeiture Program diligently restores lost funds recognizing significant assistance by USPIS Philadelphia Division's Harrisburg Office along with contributions from various federal offices including FBI Los Angeles Field Office among others.

More information on Western Union Remission Fund is available at www.WesternUnionRemissionPhase2.com or contact via phone at (855) 786-1048 or email info@WesternUnionRemissionPhase2.com.

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