Justice Department Begins Second Distribution of Forfeited Funds to Compensate Victims of Fraud Scheme Facilitated by Western Union

The Justice Department announced today that the Western Union Remission Fund began its second distribution of approximately $18.5 million in funds forfeited to the United States from the Western Union Company (Western Union) to approximately 3,000 victims located in the United States and abroad. These victims stand to recover the full amount of their losses.

This is the second distribution of the second phase of the Western Union Remission. The first distribution of the second phase paid approximately $40 million to over 25,000 victims. Through two phases, the Western Union Remission Fund has distributed over $420 million to more than 175,000 victims who received full compensation for their losses.

The second phase of the Western Union Remission was opened in March 2022 to provide victims who had not filed petitions in the first phase of distributions an opportunity to file for remission. The Justice Department continues to review petitions for remission and reconsideration request forms from those victimized by the scheme. The Justice Department anticipates authorizing more distributions for victims in the coming months.

“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 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.”

“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.”

In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States. Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of the international consumer fraud scheme through the remission process. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.

In this scheme, fraudsters targeted consumers, including seniors, through multiple scams. Three specific scams directed towards seniors include the grandparent scam, where the fraudster would pose as the victim’s relative in need of immediate money to avoid personal harm, lottery, or sweepstakes scams; where the fraudster would tell the victim that they had won a large cash prize but had to pay fees such as taxes to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose. In each of these scams, the fraudsters convinced their victims to send money through Western Union.

Certain owners, operators, or employees of Western Union agent locations were complicit in the schemes. Western Union aided and abetted the fraud scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union fulfilled its obligations under the DPA and the court granted the motion to dismiss the information.

The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the USPIS Philadelphia Division’s Harrisburg, Pennsylvania, Office in the Western Union remission. The victim compensation payments in the Western Union case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, Central District of California, Eastern District of Pennsylvania, and Southern District of Florida. The FBI Los Angeles Field Office, IRS Criminal Investigation, Homeland Security Investigations Philadelphia, Federal Reserve Board and Consumer Financial Protection Bureau Office of Inspector General, and Department of the Treasury Office of Inspector General provided valuable assistance.

More information about the Western Union Remission Fund and its compensation to victims is available at www.WesternUnionRemissionPhase2.com. Further questions may be directed to the Western Union Remission Administrator by phone at (855) 786-1048 or by email at info@WesternUnionRemissionPhase2.com.

Department of Justice
Office of Public Affairs

Source: Justice.gov