American Express (NYSE:AXP) shares moved higher Friday, on word the financial giant will pay a total of about $230 million to resolve federal wire fraud investigations and to settle civil allegations of deceptive marketing
The tally includes more than $138 million as part of a non-prosecution agreement with the U.S. Attorney’s Office 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 civil claims by the Department of Justice’s Civil Division that it deceptively marketed credit cards to small businesses, among other allegations.
American Express said it has also reached an “agreement in principle with the Staff of the Board of Governors of the Federal Reserve System,” which it expects to finalize in the coming weeks.
“American Express misled their customers by touting tax breaks that simply didn’t exist,” said Harry Chavis, special agent in charge for the IRS’ New York criminal investigation division, in a statement.
“This deceitful marketing campaign … involved hundreds of employees defrauding their customers and the government,” Chavis said.
AXP shares began Friday ahead $1.58 to $313.06
