American Express Settles Federal Investigation for $230 Million
Deceptive Marketing and Wire Fraud Allegations Resolved
In a significant development, American Express has agreed to pay approximately $230 million to settle a federal criminal wire fraud investigation and allegations of deceptive marketing practices. This substantial settlement amount follows recent agreements by other major companies, including Mastercard and Block, to resolve claims from prosecutors or regulators.
Inaccurate Tax Advice and Deceptive Marketing
The banking giant will pay more than $138 million as part of a non-prosecution agreement with federal prosecutors in Brooklyn, New York, related to allegations that American Express provided customers with inaccurate tax advice for two wire products. Additionally, the company will pay $108.7 million to resolve claims by the Department of Justice’s Civil Division that it deceptively marketed credit cards to small businesses, among other allegations.
Resolution of Matters
American Express stated that, “Pursuant to the agreements and after crediting, American Express will pay approximately $230 million in total to resolve these matters.” This settlement brings closure to the investigation and allegations, allowing the company to move forward.
Industry-Wide Trend
This settlement is part of a larger trend of major companies resolving claims from prosecutors or regulators. The financial industry has seen several high-profile settlements in recent months, highlighting the importance of compliance and transparency.
Stay Informed
This is a developing story, and we will provide updates as more information becomes available. If you have any confidential news tips, we encourage you to share them with us.
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