The second phase of the Western Union Remission began in March 2022 to accommodate victims who had not filed claims during the first distribution phase. The Justice Department continues to process new petitions for remission and reconsideration requests from victims of the fraud. Additional distributions are anticipated in the coming months as the review process progresses.
The Justice Department announced today the commencement of the second distribution phase of the Western Union Remission Fund, which will allocate approximately $18.5 million to around 3,000 victims both domestically and internationally. This latest distribution aims to fully compensate these individuals for their losses incurred through various fraud schemes facilitated by Western Union.
This round of distributions follows an initial payout of about $40 million to over 25,000 victims as part of the second phase of the Western Union Remission Fund. To date, the fund has dispersed more than $420 million to over 175,000 victims, ensuring full reimbursement for their financial losses.
“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 of its authorities to make crime victims whole.”
The second phase of the Western Union Remission began in March 2022 to accommodate victims who had not filed claims during the first distribution phase. The Justice Department continues to process new petitions for remission and reconsideration requests from victims of the fraud. Additional distributions are anticipated in the coming months as the review process progresses.
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the U.S. government, admitting to violations of the Bank Secrecy Act and aiding and abetting wire fraud. As part of the agreement, Western Union agreed to forfeit $586 million, which has been allocated to the remission fund to compensate victims of an extensive international consumer fraud scheme. Additionally, Western Union resolved a parallel civil investigation with the Federal Trade Commission (FTC).
“The latest distribution of $18.5 million to approximately 3,000 victims again highlights the commitment of our prosecutors and law enforcement partners,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Western Union allowed fraudsters to carry out schemes against the most 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.”
The fraud schemes targeted by this fund included several deceptive practices, particularly aimed at seniors. Notable scams included the "grandparent scam," where fraudsters posed as relatives in urgent need of money; lottery and sweepstakes scams, which falsely claimed that victims had won large prizes but needed to pay fees to claim them; and romance scams, where perpetrators posed as online love interests to solicit funds. In all these schemes, the victims were instructed to send money through Western Union.
The investigation revealed that some owners, operators, or employees of Western Union agent locations were complicit in these fraud schemes. Western Union was found to have failed in its obligations to suspend or terminate agents involved in the fraudulent transactions, allowing these transactions to proceed unchecked. Following its compliance with the DPA terms, Western Union's criminal charges were dismissed by the court.
“This $18.5 million disbursement to approximately 3,000 victims represents the U.S. Postal Inspection Service’s commitment to the American people and the many victims of financial fraud,” said U.S. Postal Inspector in Charge Christopher Nielsen of the U.S. Postal Inspection Service’s (USPIS) Philadelphia Division. “The Western Union Remission process has now disbursed over $420 million to approximately 175,000 victims. This accomplishment reflects our continued efforts with the U.S. Department of Justice’s Money Laundering and Asset Recovery Section to provide financial reimbursement to those victimized by a large scale and sophisticated mass marketing fraud.”
The ongoing distribution efforts are part of the Justice Department's commitment to providing restitution for victims of these fraudulent schemes and ensuring accountability for those involved in facilitating the crimes.
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