Prosecutors charged the firm marketed two products with inaccurate tax advice
of ConsumerAffairsAmerican Express has agreed to pay $230 million to settle charges in two cases brought by federal officials.
The financial services firm will pay $138 million to resolve an investigation by the U.S. Attorneys Office in Brooklyn, N.Y., which accused American Express of giving customers inaccurate tax advice about two of its products in order to increase sales.
At the same time, the company will pay nearly $109 million to settle charges by the Department of Justices Civil Division that it deceptively marketed some of its credit cards.
The non-prosecution agreement requires American Express to continue to cooperate with and provide information to the office for at least the 36-month term of the agreement. In the event that the company violates the NPA, prosecution could result.
Financial institutions like American Express have no business pitching inaccurate tax avoidance schemes to sell products and turn a quick profit, stated Acting U.S. Attorney Judy Philips. This resolution ensures that American Express will be held financially accountable for the unacceptable conduct of its sales employees in misrepresenting the tax benefits of these products.
Non-existent tax breaks
Harry T. Chavis, Jr., special agent in charge, Internal Revenue Service Criminal Investigation, New York, says American Express misled their customers by touting tax breaks that simply didnt exist.
This deceitful marketing campaign that involved hundreds of employees defrauding their customers and the government resulted in AMEX paying more than $138 million to cover their deceit, Chavis said.
Regardless of a companys size, every business is required to comply with the laws of this nation, including all tax laws.
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Posted: 2025-01-17 12:55:11
