On November 8, 2018, officials announced that money services business MoneyGram International, Inc. (“MoneyGram”) had breached a 2012 deferred prosecution agreement (“DPA”) with DOJ in relation to its anti-fraud and anti-money laundering (“AML”) programs. MoneyGram was charged in November 2012 with failing to maintain an effective AML program and aiding and abetting wire fraud, after MoneyGram agents and others engaged in fraud schemes through the company’s payment systems. At the time, DOJ agreed to defer prosecution for five years, dependent upon MoneyGram’s compliance with the DPA. According to a joint motion that was filed to extend and amend the DPA, MoneyGram continued to maintain weak anti-fraud and AML programs, made inadequate disclosures to the government regarding these weaknesses, and failed to complete all enhanced compliance undertakings required by the DPA. MoneyGram agreed to extend the DPA by 30 months, forfeit $125 million into the DOJ’s Victim Compensation Program, and further enhance its anti-fraud and AML compliance programs. In a related action, MoneyGram agreed to settle contempt allegations stemming from its alleged violation of a 2009 consent decree with the Federal Trade Commission, which required the company to implement a comprehensive fraud prevention program.
United States v. MoneyGram International, Inc., No. 12-cr-291 (M.D. Pa.)