Posted on: January 17, 2025 11:46 AM

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American express agrees to pay more than USD138 million to resolve wire fraud investigation in connection with the sales and marketing of wire products

Under the terms of the NPA, AMEX agreed to pay a criminal fine of $77,696,000 and forfeit a total of $60,700,000.  The NPA requires AMEX to continue to cooperate with and provide information to the Office for at least the 36-month term of the agreement.  In the event that AMEX violates the NPA, the Office may prosecute AMEX for any of the conduct that gave rise to the NPA and any newly discovered criminal activity.

Separately, AMEX has entered a civil settlement with the Department of Justice’s Civil Division Fraud Section (Civil Frauds) related to the tax-avoidance scheme, for which AMEX has agreed to pay a $60,700,000 civil penalty.  The Office and Civil Frauds have each agreed to credit approximately $30,350,000 of the forfeiture amount and civil fine to their respective resolutions. 

“Financial institutions like American Express have no business pitching inaccurate tax avoidance schemes to sell products and turn a quick profit,” stated Acting Attorney for the United States Philips. “This resolution ensures that American Express will be held financially accountable for the unacceptable conduct of its sales employees in misrepresenting the tax benefits of these products.”  

Ms. Philips expressed her appreciation to Civil Frauds and the Federal Reserve Board of Governors for their work on the case.

From DOJ