Moneygram Scammer Caught: 40,000 Victims Receive Compensation

A huge relief for 40,000 victims of a Moneygram scammer. They will finally receive compensation for the financial losses they suffered.

The scammer was caught and brought to justice, but the real victory is the compensation that will be paid out to those affected. The victims will receive a significant amount of money to help them recover from the scam.

The compensation is a result of a long and complex legal battle, but it's a welcome outcome for those who were scammed. It's a reminder that justice can be served, even in cases of financial crime.

The compensation will be distributed to the victims in the coming weeks and months, bringing a sense of closure and relief to those who were affected.

The MoneyGram scam exposed a shocking truth: nearly 40,000 victims received over $115 million in compensation for being targeted by fraud schemes processed by MoneyGram International Inc.

The victims, many of whom are elderly, will recover the full amount of their losses. This is a significant victory for the Department of Justice, which has made it a priority to make victims whole.

The scam was processed through MoneyGram's system, and the company has faced severe consequences for its failure to maintain an effective anti-money laundering program. MoneyGram originally entered into a deferred prosecution agreement in 2012 and forfeited $125 million in 2018.

In a significant victory for justice, nearly 40,000 victims have been compensated for their losses in a major money laundering and fraud scheme.

The U.S. Postal Inspection Service (USPIS) has disbursed over $115 million to 38,889 victims, with each receiving the full amount of their losses.

This distribution is a result of a deferred prosecution agreement between MoneyGram and the Department of Justice in 2012, which led to the forfeiture of $125 million.

The USPIS is using these forfeited funds to compensate the victims through the remission process.

The victims, many of whom are elderly, will receive restitution for the fraud schemes processed by MoneyGram.

This $115 million disbursement is a measure of financial justice for the many victims who were harmed by fraudsters.

The USPIS is proud to be part of this collaborative effort with law enforcement and regulatory partners to facilitate a process where victims are delivered restitution.

The USPIS is managing the victim remission, with the Philadelphia Division's Harrisburg office investigating the case and the Money Laundering and Asset Recovery Section's Bank Integrity Unit and the U.S. Attorney's Office for the Middle District of Pennsylvania prosecuting it.

More information about the remission process is available at http://moneygramremission.com/.

MoneyGram has been accused of engaging in old practices that put consumers at risk.

The company's lack of transparency in their fees and exchange rates is a major concern.

In some cases, MoneyGram's fees can be as high as 20% of the transaction amount.

This can be a significant burden for consumers, especially those who are already vulnerable to financial scams.

MoneyGram's failure to provide clear and concise information about their fees and exchange rates makes it difficult for consumers to make informed decisions.

This lack of transparency is a hallmark of old practices that prioritize profits over people.

MoneyGram's business model is designed to maximize profits, but this can come at the expense of consumer trust and confidence.

Fraudsters tricked victims into sending money via wire through money transmitter businesses like Western Union or MoneyGram.

They also instructed victims to buy gift cards and provide them to the scammers, or to mail cash to alias names via FedEx or UPS.

The scammers often gained access to victims' personal data and bank and credit card information after convincing them to let them remotely access their computers for technical support.

Victims were initially contacted by phone or via internet sites, directed to a particular phone number, where they were told various stories to gain their trust.

The scammers would then gain further access to victims' personal data and bank and credit card information, as the Department of Justice stated.