Wachovia Facing Fines Over Scam Transactions

NEW YORK -- For several years, Wachovia reportedly honored thousands of fraudulent transactions for more than $140 million from telemarketing scammers. Wachovia is said to have collected millions of dollars in fees, and despite numerous warnings from inside and outside of the bank, apparently never looked into the sources of the fraudulent transactions, ABC News reported.

In a public filing with the Securities and Exchange Commission yesterday, the company said it expects it will have to pay in order to resolve the probe, ABC News reported.

In February, Wachovia noted that the U.S. Treasury's Office of the Comptroller of the Currency had opened an investigation into its relationship with six commercial customers accused of defrauding consumers, many of whom were elderly, according to ABC News.

-- NYSSCPA.org News Staff

Posted on 4/16/08