Breaking News: FBI Probes American Express on Alleged FX Malpractice
BREAKING NEWS – On Thursday, the Federal Bureau of Investigation (FBI) is conducting an investigation to American Express (AmEx), which is a financial services firm known for its credit cards, based on reports.
The investigation is due to the alleged malpractice in the foreign exchange (FX) division of the financial services firm. To attract clients, the AmEx lied about its prices, according to reports. One client has signed up for the services of AmEx and surprisingly the firm raised its prices without warning according to the client.
The FBI is gathering facts on the case. Moreover, reports suggested that the FBI has communicated with AmEx and that they are waiting for the response of the firm with their list of questions.
The only positive about the case for AmEx is the size of their FX division. AmEx’s FX business caters services to small and medium-sized businesses. Moreover, half a percent of AmEx revenues come from the FX division.
Another report stated that the employees of AmEx have been increasing conversion rates on a regular basis without informing clients. The purpose of this is to increase the firm’s revenue and commissions.
Further, the paper has also reported that the firm’s management instructed the sales representatives to vaguely discuss payments. The representatives were also instructed to avoid listing the prices.
Moreover, reports claimed that AmEx employees would assure clients on having the best prices for currency conversion or overseas transfers. The, they will increase the margin fees without informing customers. This procedure has been emerging for several years. However, the practice had been there since 2004, according to AmEx’s current and former employees.
Breaking News: 2 Whistleblowers Receive $54 Million Award from SEC
Two whistleblowers received a total of $54 million awards from the United States SEC (Securities and Exchange Commission). The SEC granted $39 million, which is the commission’s second-largest grant, and $15 million to two respective whistleblowers.
“These whistleblowers’ critical information and continued assistance helped the agency bring an important enforcement action,” Commission said in an official announcement.
“These substantial awards send a strong message about the SEC’s commitment to whistleblowers and the value they bring to the agency’s mission,” explained Jane Norberg, Chief of the SEC’s Office of the Whistleblower.
The reward program started in 2012. In fact, the SEC has granted more than $320 million across 57 individuals since then.
