In order to give compensation for victims of Western Union fraud, the Department of Justice today stated that phase two of the remission compensation process has started.
With the Department of Justice, Western Union entered into a deferred prosecution agreement (DPA) in 2017 and consented to forfeit $586 million. In the past, the Department of Justice gave more than 148,000 victims $366 million. The Department of Justice has reopened the petition procedure to possible victims who did not previously submit a petition for remission because more forfeited assets are still available in this case.
Between January 1, 2004, and January 19, 2017, fraud victims who sent money transfers through Western Union are eligible to submit a petition for remission and obtain reimbursement for their losses.
Individuals who believe they may be victims may file a petition online or may obtain a petition form online at www.WesternUnionRemissionPhase2.com.
The deadline to file a petition for remission is Aug. 31, 2022. More information regarding the remission process, including eligibility criteria, updates, and frequently asked questions is available at the remission website or by calling 1-855-786-1048.
“The department is pleased to have provided compensation to over 148,000 victims and hopes additional victims take the opportunity to file claims relating to the harms caused by these schemes,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Asset forfeiture is a tool critical for compensating crime victims.”
“The hard work of our dedicated investigators and prosecutors held Western Union accountable and brought justice to many individuals who perpetrated the fraud using the Western Union system,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania.
“Though we are gratified those thousands of victims have already received compensation, our work continues as we urge those other fraud victims who have not yet submitted their petitions for remission to do so promptly so that they can also receive restitution.”
“The U.S. Postal Inspection Service is very pleased and honored to have been part of this cooperative effort in providing over $366 million in financial relief to so many victims,” said Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service’s Philadelphia Division.
“As we move forward with the second phase of the Western Union Remission, we will continue to support the mission of ensuring monies are returned to their rightful owners.”
“Scammers used Western Union’s money transfer system because they knew the company turned a blind eye,” said Director Samuel Levine of the Federal Trade Commission’s (FTC) Bureau of Consumer Protection.
“With our law enforcement partners, we continue to return money to those harmed by the company’s failures, and people still have until Aug. 31 to submit claims.”
According to the DPA, Western Union admitted guilt for its illegal actions, which included breaking the Bank Secrecy Act and encouraging wire fraud, and agreed to pay $586 million, which will be used to compensate victims of a global consumer fraud scheme. In parallel, Western Union and the FTC settled a civil inquiry.
According to court documents, con artists used a variety of schemes to target consumers, especially elders, and persuade them to pay money through Western Union. The so-called grandparent scam, in which the fraudster poses as the victim’s relative in purported need of immediate money to avoid personal harm; lottery or sweepstakes scams, in which the fraudster tells the victim that he or she has won a large cash prize but must pay fees, such as taxes, to claim the prize; and romance scams, in which the fraudster poses as an online love interest and requests funds for a romantic relationship.
Certain Western Union location owners, operators, or staff were involved in the scheme. Western Union assisted and abetted the scheme by neglecting to suspend or terminate complicit agents and allowing them to conduct fraudulent financial transactions. Western Union has completed its responsibilities under the DPA, and the court granted Western Union’s motion to dismiss the criminal information.
The U.S. Postal Inspection Service Philadelphia Division’s Harrisburg Office has been a significant resource for the Department of Justice’s Asset Forfeiture Program, which works diligently to recover lost funds for crime victims. This process and the criminal fraud investigation were both handled by this office.
The remission procedure will be managed by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), which has successfully used its specialised knowledge to return billions in forfeited assets to crime victims since fiscal year 2000.
Without the remarkable work of MLARS and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida, victim compensation payments in this case would not have been possible.
The FBI’s Los Angeles Field Office, the IRS-Criminal Investigation, Homeland Security Investigations, the Federal Reserve Board, the Consumer Financial Protection Bureau’s Office of Inspector General, and the Department of the Treasury’s Office of Inspector General all contributed significantly. The civil fraud inquiry was handled by the FTC.
The remission administrator in this case is Gilardi & Co. LLC. To engage in this remission process, Gilardi & Co. LLC and the Department of Justice will not request any money.
For more information on how to protect yourself from fraud, please visit www.uspis.gov or www.consumer.ftc.gov.