UNB, Washington :
CommerceWest Bank has agreed to a $4.9 million federal settlement of a consumer fraud case involving unauthorized withdrawals from customer accounts.
With the agreement, the bank will avoid criminal prosecution in the case.
The Justice Department on Tuesday announced the deal with CommerceWest, a small 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, based in Irvine, California, admitted that it failed to report to the government suspicious activity in its accounts by payment processor V Internet Corp. The bank won’t be prosecuted on condition it gives up its claim to about $2.9 million seized by law enforcement authorities from the CommerceWest accounts of V Internet.
In addition, CommerceWest will pay a $1 million civil penalty and will forfeit $1 million to the U.S. Postal Inspection Service’s consumer fraud fund.
The Justice Department said CommerceWest enabled fraud by allowing V Internet, on behalf of fraudulent merchants, to make millions of dollars of unauthorized withdrawals from customer accounts.
CommerceWest Bank has agreed to a $4.9 million federal settlement of a consumer fraud case involving unauthorized withdrawals from customer accounts.
With the agreement, the bank will avoid criminal prosecution in the case.
The Justice Department on Tuesday announced the deal with CommerceWest, a small 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, based in Irvine, California, admitted that it failed to report to the government suspicious activity in its accounts by payment processor V Internet Corp. The bank won’t be prosecuted on condition it gives up its claim to about $2.9 million seized by law enforcement authorities from the CommerceWest accounts of V Internet.
In addition, CommerceWest will pay a $1 million civil penalty and will forfeit $1 million to the U.S. Postal Inspection Service’s consumer fraud fund.
The Justice Department said CommerceWest enabled fraud by allowing V Internet, on behalf of fraudulent merchants, to make millions of dollars of unauthorized withdrawals from customer accounts.
