Nevada Attorney General Adam Paul Laxalt announced a settlement with Dallas-based MoneyGram Payment Systems, Inc.
The settlement resolves a multi-state investigation that focused on the complaints of defrauded consumers who used MoneyGram’s wire transfer service to send money to third parties involved in fraudulent schemes.
In addition to Nevada, 48 states and the District of Columbia participated in this settlement.
As a result of the settlement, MoneyGram has agreed to maintain and improve a robust anti-fraud program designed to help detect fraud and prevent consumers from suffering financial losses as a result of fraud-induced wire transfers.
Additionally, MoneyGram has agreed to pay a total of $13 million to participating states, to fund a nationwide consumer restitution program and cover the states’ costs and fees.
The settlement also provides for an independent third-party settlement administrator to review MoneyGram records and send notices to all consumers eligible to receive restitution under this settlement.
Generally, consumers eligible for restitution filed complaints with MoneyGram between July 1, 2008 and August 31, 2009, regarding fraud-induced transfers sent from the U.S. to foreign countries other than Canada.
For more information on this settlement, click here.