With the agreement, the bank will avoid criminal prosecution in the case. The Justice Department on Tuesday announced the deal with CommerceWest, a bank with operations in Southern California. The settlement resolves a criminal charge and a civil lawsuit against the bank.
Under terms of the agreement, CommerceWest admitted that it failed to report to the government suspicious activity in its accounts by payment processor V Internet Corp. The bank will not be prosecuted on condition it gives up its claim to about USD 2.9 million seized by law enforcement authorities from the CommerceWest accounts of V Internet.
CommerceWest will pay a USD 1 million civil penalty and will forfeit USD 1 million to the US Postal Inspection Service’s consumer fraud fund.
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