The Department of Justice announced that it has begun the third phase of the remission compensation process to provide recovery for Western Union fraud victims. . In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the Department of Justice and agreed to forfeit $586 million. The Department of Justice previously distributed over $436.9 million to more than 180,000 victims.
Key details of the case
Because additional forfeited funds remain available in this case, the Department of Justice has reopened the petition process to potential victims who did not previously submit a petition for remission. “The Department is pleased to announce the third and final phase of the Western Union remission process,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
“Thousands of victims have already obtained over $430 million in compensation in the first two phases. This third phase represents the Criminal Division’s continued dedication to taking the profit out of crime and compensating victims of fraud.” . “This additional $3.4 million in remission to 1,294 victims and the opening of the Victim Portal represents the U.S.
Postal Inspection Service’s commitment to ensuring all victims of consumer fraud are protected,” said Inspector in Charge Christopher Nielsen of the U.S. Postal Inspection Service’s Philadelphia Division. “We are proud of our efforts recovering over $400 million for victims of this fraud.
Enforcement actions and official statements
We thank our partners for their contributions to this cooperative effort.”. Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct. Included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million.
As a result, this money has been made available to compensate victims of an international consumer fraud scheme. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission. According to court documents, fraudsters targeted consumers, including seniors, through multiple scams and convinced their victims to send money through Western Union. For complete details, refer to the official DOJ press release.
Consequently, three specific scams directed towards seniors included the so-called grandparent scam. The fraudster would pose as the victim’s relative in purported need of immediate money to avoid personal harm; lottery or sweepstakes scams, where the fraudster would tell the victim that he or she 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. Certain owners, operators, or employees of Western Union locations were complicit in the scheme.
Notably, western Union aided and abetted the 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. The court granted the motion to dismiss the criminal information against Western Union in 2020. For related coverage, see AIDS Healthcare Foundation Agrees to $1.44 Million False Claims Act Settlement.
Specifically, the Department of Justice, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service Philadelphia Division’s Harrisburg Office in the victim compensation process and in conducting the criminal fraud investigation. Since fiscal year 2000, the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF).
Subsequently, has overseen the remission process, has successfully used its specialized expertise to return more than $13 billion in forfeited assets to victims of crime. . The victim compensation payments in this case would not have been possible without the extraordinary efforts of MNF 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. For related coverage, see Independence Blue Cross (IBX) to Pay $22.5 Million to Resolve False Claims Act Allegations.
At the same time, the FBI’s Los Angeles Field Office, IRS-Criminal Investigation, Homeland Security Investigations, the Federal Reserve Board, the Consumer Financial Protection Bureau Office of Inspector General, and the Department of the Treasury Office of Inspector General provided valuable assistance. The FTC conducted the civil fraud investigation. MNF Attorney Advisor Brittany R.
In particular, van Camp with the section’s Program Management and Training Unit is leading the remission process. Verita Global LLC (formerly known as Gilardi & Co. LLC) is serving as the remission administrator in this matter.
Furthermore, verita Global LLC and the Department of Justice will not ask for any payment to participate in this remission process. Neither the Remission Administrator nor the Department of Justice will ask for any payment to participate in this remission process. Please be cautious of any individual or organization claiming to represent the Remission Administrator or the federal government in this matter.
Investigation and prosecution details
If you are a victim, any communications will come directly from the Remission Administrator or from government representatives with whom you have already had contact. PSA: FBI Warns of the Impersonation of Law Enforcement and Government Officials: www.ic3.gov/PSA/2025/PSA250418. How To Avoid a Government Impersonation Scam: consumer.ftc.gov/articles/how-avoid-government-impersonation-scam .