Links in “Fines, Penalties, Suits, and Settlements”
- FinCEN Takes out the Trash, Charges $1 Million
FinCEN issued a $1 million civil money penalty against Thomas E. Haider, who oversaw the fraud and AML compliance departments of MoneyGram. According to FinCEN Director Jennifer Calvery, Mr. Haider "created an environment where fraud and money laundering thrived and dirty money rampaged through the very system he was charged with protecting." [12/19/14]
- Getting Personal: FinCEN Goes After Compliance Officer
In what is being perceived as an unprecedented move, FinCEN is seeking to hold a compliance officer personally responsible to the tune of $1 million for the anti-money laundering failures of his employer. FinCEN alleges MoneyGram's compliance officer allowed criminals to defraud consumers and launder the proceeds. [12/19/14]
- CFPB v. Sprint: The Bureau Just Got Bigger
The CFPB just added telecommunications to its jurisdiction by filing a lawsuit against Sprint for "cramming," a practice of slipping new fees into consumers' bills for services the customer never signed up for. Of course, everybody wants to cheer the CFPB for that, but did you see what the bureau just did there? [12/18/14]
- CFPB Goes After Two Companies for Student Loan Debt Relief Practices
CFPB sues two companies for a range of infractions in their dealings with student loan recipients, from tricking consumers into paying upfront fees to access free federal loan benefits, implying an affiliation with the government, and charging consumers a monthly fee. More coverage here. [12/12/14]
- What’s New at the CFPB?
Not much new reported in the CFPB's most recent semi-annual report. But it did break down the number of enforcement actions for TILA violations, EFTA violations, and CARD Act violations. [12/9/14]
- CFPB Puts Debt-Settlement Firm in Chokehold
The CFPB recently brought charges against Premier Consulting Group for illegally charging up-front fees for debt-settlement services that customers never received. In many instances, the upfront fees coupled with the ineffective or non-existent services offered caused consumers to fall deeper in to debt. Premier Consulting Group is set to pay a fine of $69,075, and will be prohibited from future violations. [12/5/14]
- Judge Rules Target Had Duty to Protect Data
A Minnesota federal court judge has ruled that Target had a duty to protect debit and credit card information from cyber thieves. This means that the plaintiffs, which include CSE Federal Credit Union, can proceed with their case for damages based on Targetâs negligence in protecting consumer data. [12/4/14]
- Target Loses Bid to Dismiss Bank Claims
Judge refuses Target's bid to dismiss a suit filed by five banks against it for damages sustained from the retailer's data breach. Judge says case will aid in policy of "punishing companies that do not secure consumers' credit- and debit-card information." [12/3/14]
- Swiss HSBC’s Faux Pas
HSBC's Switzerland-based private bank agreed to pay $12.5 million to settle charges by the SEC for providing services to US clients without being properly registered and qualified to offer such services. The bank serves as an example to any institution offering services to non-domestic clients. [12/3/14]
- Cook County Accuses Bank of Targeting Minority Borrowers
Cook County, which includes Chicago, has accused Wells Fargo of predatory lending, the practice of targeting minority borrowers for more costly home loans than their white counterparts. The county is seeking an amount that may exceed $300 million. [12/2/14]
