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BumRushDaShow

(149,964 posts) Thu Jan 16, 2025, 07:37 PM Jan 16

American Express to pay $230 million to settle DOJ fraud probe, deceptive marketing claim

Source: NBC News/CNBC

Jan. 16, 2025, 2:40 PM EST / Source: CNBC

American Express will pay a total of about $230 million to resolve federal wire fraud investigations, and to settle civil allegations of deceptive marketing, the company said Thursday.

The tally includes more than $138 million as part of a non-prosecution agreement with the U.S. Attorney’s Office in Brooklyn, New York, related to allegations that American Express gave customers “inaccurate tax advice” for two wire products.

Separately, the banking giant will pay $108.7 million to resolve civil claims by the Department of Justice’s Civil Division that it deceptively marketed credit cards to small businesses, among other allegations.

Amex said it has also reached an “agreement in principle with the Staff of the Board of Governors of the Federal Reserve System,” which it expects to finalize in the coming weeks. “Pursuant to the agreements and after crediting, American Express will pay approximately $230 million in total to resolve these matters,” Amex said.

Read more: https://www.nbcnews.com/business/business-news/american-express-pay-230-million-settle-doj-fraud-probe-deceptive-mark-rcna188031

Link to DOJ PRESS RELEASE - American Express Agrees to Pay $108.7M to Settle Allegations of Deceptive Marketing and “Dummy” Account Information

5 replies

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American Express to pay $230 million to settle DOJ fraud probe, deceptive marketing claim (Original Post) BumRushDaShow Jan 16 OP

slap on the wrist? How much $ did the fraud get them? Nictuku Jan 16 #1

the people deceived don't get the money ClaudetteCC Jan 16 #2

Good question Lulu KC Jan 16 #5

$230 million to settlement for fraud, and no one goes to jail. republianmushroom Jan 16 #3

"American Express will pay approximately $230 million . . . " AverageOldGuy Jan 16 #4

Nictuku

(4,109 posts)

1. slap on the wrist? How much $ did the fraud get them?

Reply to BumRushDaShow (Original post)

Thu Jan 16, 2025, 07:52 PM

Jan 16

I think if a company commits fraud, that they should not be able to settle for less than what they stole.

ClaudetteCC

(54 posts)

2. the people deceived don't get the money

Reply to BumRushDaShow (Original post)

Thu Jan 16, 2025, 08:03 PM

Jan 16

but where does the money go, general tax fund?

Lulu KC

(7,638 posts)

5. Good question

Reply to ClaudetteCC (Reply #2)

Thu Jan 16, 2025, 10:44 PM

Jan 16

Another corner of the world that makes no sense.

republianmushroom

(19,278 posts)

3. $230 million to settlement for fraud, and no one goes to jail.

Reply to BumRushDaShow (Original post)

Thu Jan 16, 2025, 09:02 PM

Jan 16

Amazing.

Anyone want to tell me that crime doesn't pay.

AverageOldGuy

(2,513 posts)

4. "American Express will pay approximately $230 million . . . "

Reply to BumRushDaShow (Original post)

Thu Jan 16, 2025, 10:24 PM

Jan 16

To whom will they pay?

I may be an old grouch but these "settlements" are bullshit.

Years ago, before I understand life insurance and investments, I was talked into buying a life insurance policy that, decades later, was the subject of a class-action suit because it was sold under false circumstances. The insurance company had to pay something like $300 million. I received a notice that I was part of the class and if I filled out this form, I would receive some of the settlement money.

I received $65.00 -- after paying a $1,000 annual premium for ten years.

I suspect the lawyers will get 99.9% of the $230 million. They really need it.

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