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American Express will pay approximately $230 million to resolve a federal criminal wire fraud investigation and settle allegations of deceptive marketing, the company said Thursday.
The total includes more than $138 million as part of a non-prosecution agreement with federal prosecutors in Brooklyn, New York, related to allegations that American Express gave customers “inaccurate tax advice” for two wire products.
Separately, the banking giant will pay $108.7 million to resolve claims by the Department of Justice’s Civil Division that it deceptively marketed credit cards to small businesses, among other allegations.
American Express in a statement said, “Pursuant to the agreements and after crediting, American Express will pay approximately $230 million in total to resolve these matters.”
The big settlement amount follows recent agreements by other large companies, including Mastercard and Block, to settle claims from prosecutors or regulators.
This is developing news. Please check back for updates.