News

CommerceWest Bank pays almost USD 5 mln to settle fraud case

Wednesday 11 March 2015 09:04 CET | News

CommerceWest Bank has agreed to a USD 4.9 million federal settlement of a consumer fraud case involving unauthorized withdrawals from customer accounts.

With the agreement, the bank will avoid criminal prosecution in the case. The Justice Department on Tuesday announced the deal with CommerceWest, a bank with operations in Southern California. The settlement resolves a criminal charge and a civil lawsuit against the bank.

Under terms of the agreement, CommerceWest admitted that it failed to report to the government suspicious activity in its accounts by payment processor V Internet Corp. The bank will not be prosecuted on condition it gives up its claim to about USD 2.9 million seized by law enforcement authorities from the CommerceWest accounts of V Internet.

CommerceWest will pay a USD 1 million civil penalty and will forfeit USD 1 million to the US Postal Inspection Service’s consumer fraud fund.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: fraud prevention, web fraud, digital identity, online security, CommerceWest Bank, fraud case
Categories: Fraud & Financial Crime
Companies:
Countries: World
This article is part of category

Fraud & Financial Crime






Industry Events