Wachovia/Wells Fargo Pays $160 Million to Halt Drug Money Laundering Probe

Saturday, March 20, 2010
(photo: Soseisthehood)

The U.S. Department of Justice has convinced Wachovia bank to pay the government $160 million for allowing its foreign exchange houses in Mexico to launder drug money.

 
Wachovia, now owned by Wells Fargo, admitted to permitting $110 million to be wired from the U.S. to south of the border from 2004-2007 to buy aircraft for drug cartels. But the laundering may have been even greater, according to the Drug Enforcement Administration, which claimed Wachovia failed to keep track of $420 billion in transactions by Mexican exchange houses.
 
The $160 million fine represents the biggest penalty ever imposed under the Bank Secrecy Act, which requires financial institutions to carefully track transactions to detect suspicious activity.
 
Jeffrey H. Sloman, the U.S. Attorney whose Southern District of Florida office led the investigation, said, "Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations by laundering at least $110 million in drug proceeds. Corporate citizens, no matter how big or powerful, must be held accountable for their actions."
-Noel Brinkerhoff, David Wallechinsky
 
Wachovia Settles Money-Laundering Case (by Evan Perez and Carrick Mollenkamp, Wall Street Journal)

Comments

Donna 7 years ago
Letter to Wells Fargo Spokeswpman Vickee Adams, Dear Ms. Vickee Adams, In your recent Wells Fargo's press release, you declared that ""Our records show that Wells Fargo's foreclosure affidavits are accurate, When the company finds employees that don't follow procedure, it takes "corrective action." That's a lie. I can say for a fact that Wells Fargo made us fraudulent mortgage loan and foreclosed my home based on hugely inflated and fraudulent appraisal and refused to correct its mortgage fraud. Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud. Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal. Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal. Wells Fargo chose to violate the law and chose to defraud us. Hold Wells Fargo Accountable! Save American Dream! Restore banking integrity. Please sign the Petition at http://www.wellsfargomortgagefraud.com. Let our voice be heard!

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