MoneyGram to Pay $100 MLM in Consumer Fraud Case

Nov. 9, 2012, 9:27 a.m. EST

MoneyGram to pay $100 mln in Consumer Fraud Case

–Three years ago MoneyGram agreed to pay $18 million to settle charges involving telemarketing scammers

–DOJ says MoneyGram knew of the fraud, but “rarely accepted” recommendations to terminate complicit agents

Prepayment services firm MoneyGram International Inc. MGI +1.09% agreed to pay $100 million to settle charges that certain of its U.S. and Canadian agents defrauded tens of thousands of customers and also that it failed to maintain an effective anti-money laundering program.

The justice department alleges MoneyGram knew some of its agents were “involved in a scheme to defraud,” and the victims were “fraudulently induced to send money” through MoneyGram. The schemes included promising victims they would receive large cash prizes and lottery winnings, falsely offering expensive items for sale online at deep discounts and falsely posing as a relative asking for money.

The victims were directed to send advance payments to fictitious payees using MoneyGram’s money transfer system. These payees then brought the victims’ MoneyGram reference numbers to MoneyGram agents to withdraw money. The DOJ alleges that the “MoneyGram agents knowingly entered false addresses, telephone numbers and personal identification document information for these transactions into the MoneyGram database” and that the agents “gave the perpetrators the victims’ money after subtracting their own fees for completing the fraudulent transaction.”

The DOJ said MoneyGram knew its agents were involved in the scheme to defraud customers, pointing out that between 2004 to 2009, MoneyGram customers filed about 63,8144 consumer fraud reports involving transfers paid out totaling about $128.4 million in losses because of the scheme.

While the company’s fraud department recommended that certain agents and outlets be terminated for fraud, the DOJ says “the fraud department’s termination recommendations were rarely accepted.” As a result, agents complicit in the scheme stayed on and fraud “skyrocketed.”

The settlement comes about three years after MoneyGram agreed to pay $18 million to settle similar charges with the U.S. Federal Trade Commission.

Chief Executive Pamela H. Patsley said Friday that since 2009, MoneyGram has “created a new culture at the company and have taken numerous steps to enhance our global compliance and anti-fraud programs.” The company said in its statement that it has terminated its relationship with agents involved in the fraud.

Ms. Patsley called the scheme “unacceptable to MoneyGram and counter to everything we strive to stand for. She added it takes “compliance very seriously at MoneyGram, and nothing angers us more than when our services are used to perpetrate illegal activity.”

Under the latest deal–a deferred prosecution agreement with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the Department of Justice–MoneyGram has agreed to the appointment of an independent compliance monitor and a forfeiture of $100 million that will be available to victims of the consumer fraud scams perpetrated through MoneyGram agents. No further action will be taken against MoneyGram if it meets the agreement’s conditions.

The company had disclosed it was in discussion with authorities about the investigation in previous filings. During the second quarter, it made an accrual for $30 million. On Friday, it said it had made an additional accrual of $70 million in the third quarter related to the matter.

MoneyGram also reported Friday that it had swung to a third-quarter loss, as a rise in total operating expenses outweighed higher revenue.

Shares rose 1.1% to $13.94 in recent trading. The stock has dropped 32% in the past year.

SOURCE WSJ: MoneyWatch

Home Revenue System

The Better Business Bureau is warning the general public of Home Revenue System.

The address being used by the company of 2885 Sanford Ave SW # 15150, Grandville, MI is actually that of a company by the name of Mailbox Forwarding Inc. The true physical address of Home Revenue System is unknown.

According to information in BBB files, it appears that the company is no longer in business. The phone numbers BBB had for this company are disconnected, and directory assistance does not have a listing for this company, and/or BBB’s mail to this company has been returned as undeliverable. If you have an unresolved dispute with this company you may wish to seek legal advice.

2885 Sanford Ave SW # 15150,
Grandville, MI 49418-1342
(877) 780-1280 (Disconnected)

Williams Online Credit

Due to the number of complaints against Williams Online Credit with the Better Business Bureau, scamFRAUDalert see it fit to issue this ALERT

Williams Online Credit
73 Greentree Dr. #56
Dover, DE 19904
Phone: 302-526-4051
Fax: 877-552-3349

Customer Complaints Summary

65 complaints closed with BBB in last 3 years | 64 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 3
Billing/Collection Issues 34
Delivery Issues 1
Guarantee/Warranty Issues 1
Problems with Product/Service 26
Total Closed Complaints 65

SEC Charges Former MediCor CEO

SEC Charges Former MediCor CEO, Chairman and COO With Concealing True Source of Company’s Funding

The Securities and Exchange Commission today charged Theodore Robert Maloney (Maloney), the former chief executive officer of MediCor, Ltd. (MediCor), with fraud and other misconduct for concealing the true and precarious source of MediCor’s funding from investors and the company’s auditor. The Commission simultaneously filed related settled civil actions against Donald K. McGhan, MediCor’s founder and former Chairman (Don McGhan), and Jimmy J. McGhan, the company’s former chief operating officer (Jim McGhan).

The SEC complaints, filed in the Nevada District Court, allege that from 2004 through 2006, MediCor filed false and misleading annual reports, quarterly reports and proxy statements that falsely stated that the company was substantially funded by Don McGhan or one of his affiliates, when in fact a significant source of MediCor’s funding was money illegally transferred from Southwest Exchange Corp. (Southwest). Southwest was a private company that held deposits for taxpayers seeking to defer capital gains taxes on like-kind exchanges of property.

According to the SEC’s complaint, Maloney and Don McGhan concealed the illegal transfer of Southwest funds by creating a paper trail designed to hide the true source of MediCor’s financing; Maloney and the McGhans also concealed information regarding the true source of MediCor’s funding from MediCor’s auditor. Maloney was the person primarily responsible for preparing MediCor’s misleading public filings; Maloney, Don McGhan and Jim McGhan each signed the filings. The complaint further alleges that by the end of 2006, Don McGhan, with Maloney’s help and Jim McGhan’s knowledge, had transferred over $54 million out of Southwest for MediCor’s benefit. Southwest collapsed in January 2007, owing approximately $97 million to its clients. MediCor declared bankruptcy in June 2007.

The SEC is charging Maloney with violating Sections 10(b), 13(b)(5) and 14(a) of the Securities Exchange Act of 1934 (Exchange Act), and Exchange Act Rules 10b-5, 13b2-2 and 14a-9, and with aiding and abetting MediCor’s violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1 and 13-13. The SEC seeks a permanent injunction, civil penalty and a permanent officer and director bar against Maloney.

Don McGhan and Jim McGhan each has agreed to settle to charges of violating Sections 10(b) and 14(a) of the Exchange Act and Exchange Act Rules 10b-5 and 14a-9, and with aiding and abetting MediCor’s violations of Sections 13(a) of the Exchange Act and Exchange Act Rules 12b-20 and 13a-1. Don McGhan has agreed to consent to a permanent injunction and officer and director bar. Jim McGhan has agreed to consent to a permanent injunction and a 5-year officer and director bar. [SEC v. Theodore R. Maloney; Securities and Exchange Commission vs. Donald K. McGhan and Jimmy J. McGhan, Civil No. 2:11-CV-74; Civil No. 2:11-CV-75 (USDC Nevada)] (LR-21816)

Clayton Careers & Partners

The Purpose of this post is to ALERT you that the job you are about to apply for or may have applied FOR or is CONSIDERING APPLYING FOR is FRAUDULENT.

These job postings are an attempt to lure you into cashing counterfeit checks and have you wire funds via Western Union or MoneyGram. Essentially You Become A Money or RePackage Mule.

The identity of an individual or entity have been stolen along with fund from their bank accounts. You are being recruited to wire transfer  these funds either by WESTERN UNION, MONEYGRAM, into your  bank, a DOMESTIC BANK or FOREIGN BANK ACCOUNT

  1. Understanding The Cyber Theft Ring
  2. Money Mule Explained
  3. Protecting Yourself Against Money Mule
  4. by Brian Kerbs
  5. Interview With A Money Mule
  6. ~  Historical Money Mule Sites

Dear scamFRAUDalert,

My name is Lisa Johnson, head of the human resource department for Wellman Careers & Partners and just wanted to update you on the job position. I have looked over your resume and decided to have you shortlisted for the office admin position. I would like to schedule you for an interview sometime next week (Wednesday if possible) as well as get you to complete the pre-interview requirements that all shortlisted candidates must complete before I can pencil in an interview date.

The position will require you to work in a high financial environment so it’s our corporate policy that we do a financial verification check on all employees to verify applicant registration info. Its corporate policy that we have applicants sent through following link so we are compliant with the U.S employment standards act. . It will re-direct you to the report site. Fill out the form and indicate that you want the free report and say no to the platinum monitoring option if they ask you. PLEASE DO NOT email us your report. Instead print it out and bring a copy to the interview as we will need to have it on file. Since this is just a pre-screen formality your actual score will not affect your chances of being hired.

On top of that please be sure to:

-Whether a morning interview 8am-11am would be a problem
-Active references that would be okay for us to contact
-The account reference number you received after you completed the credit report form
-Working number to call you and confirm your interview date

Please complete all the outlined steps and check that the information is accurate when you respond

Additionally, I will give you a tour of our offices, discuss pay structure and go over job duties. If you are no longer looking for employment please respond with your name and ‘not interested’ in the subject field so I can better shuffle through all the mail I get and take you off the applicant list. Once again, thank you for your interest in the position. I look forward to hearing back from you.


Lisa Johnson or
telephone: 0121 2441806

Other Names Associated With This Scam:

  1. Clayton Careers & Partners
  2. AWSON Recruiting & Partners
  3. Watson Careers & Partners
  4. Coleman Careers & Partners
  5. Newman Careers & Partners
  6. Brewer Careers
  37. dater–

American Sweepstakes Publishers

Despite being around as far back as the beginning of century, consumers continue to fall for these PRIZE AWARD WINNINGS mails and emails they’ve received.

The Better Business Bureau and other Consumer Advocacy Groups have long been warning the public of these winnings. In fact, the BBB have identified Next-Gen, Inc. of Overland Park, KS 66210 to be one of the many groups behind these bulk mailing and spam emails.

7300 W 110th St Ste 700
Overland Park, Kansas 66210

scamFRAUDalert have complied a partial listing of the most popular names used below. A comprehensive list can be found on Consumer Fraud Reporting website.

  1. Prize Notification Center
  2. Opportunities Unlimited Publications
  3. Yahoo Award Notification
  4. Award Notification Commission
  5. Publisher Clearing House Award
  6. Certified Notification Center
  7. Central Award Distribution
  8. Award notification commission
  9. Google Award Notification
  10. Prize Documenting Center of America
  11. Microsoft Award Winnings
  12. Award notification commission fulfillment center
  14.  Financial Acquisition Agency
  15. American Sweepstakes Publishers
  16. National Delivery Service
  17. S C S Super
  18. Cash Sweepstakes
  19. U S Awards Commission
  20. Award Notification Commission
  21. ANC
  22. Judgment Headquarters of Administration
  23. Fidelity United Group
  24. International Award Services
  25. Central Award Distribution
  26. GV Collection

Sample Letter



Dear Lucky Winner,

We are pleased to inform you of the result of the just concluded annual final draws of LUCKYSTAR E-GAMES PROMOTION held here in the Netherlands.

The online cyber lotto draws was conducted from an exclusive list of 25,000 e-mail addresses of individual and corporate bodies picked by an advanced automated random computer search from the internet. No tickets were sold. After this automated computer ballot, your e-mail address emerged as one of two winners in the category “A” with the following:

Ref Number: 35149/337-5247/LMI
Batch Number:2637/2312-LMI/2005
Ticket Number:967666233

You as well as the other winner are therefore to receive a cash prize of 1,500.000.(ONE MILLION FIVE HUNDRED THOUSAND EUROS ONLY) each from the total payout. Your prize awards has been insured with your e-mail address and will be transferred to you upon meeting our requirements, statutory obligations, verifications, validations and satisfactory report.

To begin the claims processing of your prize winnings you are advised to contact our licensed and accredited claims agent for category “A” winners with the information below:

Mr. Robert Heinz
Financial Director,  LUCKYSTAR E-GAMES
Netherlands Company, De Amsterdamse
Poort Bijlmerplein
776 1102 MG Amsterdam
1001 BV Amsterdam


(a) Note that there exists a periodic condition on all claims process,failing which would lead to disqualification and winnings Forfeiture. Winners are therefore advised to expedite their claims process.

(b) Being one of the lucky winners, you constitute entrant’s full and unconditional agreement to and acceptance of our terms and conditions of claims toavoid any discrepancy in the cause of payment of your prize awards winning.

(c) To avoid double claims, you are advised to keep your winning details very confidential, as any discrepancies resulting from a breach of this confidentiality on the part of the winners will be covered solely by such winner as our staffs are bound by the oath of secrecy taken on employment.

(d) By this lottery prize awards winning, you acknowledge your acceptance to be added to our lottery master player database.

(e) By this prize winning, you agree to receive periodic mailings which will include, but are not limited to; Newsletters, Invitations to Play, Announcements, Adverts and Offers we feel would be of interest to our master players, from all the sponsoring entities.

(f) By this winning, you understand that you reserve the discretion to be removed from any such mailing list which automatically disqualifies you from this and subsequent lottery entries. Removal instructions are on every mails.

(g) We hereby do solemnly pledge to maintain the privacy of our master players/lucky winners database and shall not make available for sale, rent, lease or the illegal use of information about our Players/winners.

Remember to quote your reference information in all correspondence.

Anybody under the age of 18 and members of the affiliate agencies are automatically not allowed to participate in this program.

Thank you and congratulations!!!

Yours faithfully,
Mrs.Mavis Cook
Netherlands International programs all response should be mail to