Western Union pays $586 million and admits to knowing about fraudulent actions News
Western Union pays $586 million and admits to knowing about fraudulent actions

Western Union Co. [corporate website] on Thursday agreed to pay $586 million after admitting [DOJ press release] to turning a blind eye to criminals who used their service for fraud and money laundering. The US Department of Justice (DOJ) [official website] stated [Reuters report] that Western Union has admitted “to aiding and abetting wire fraud.” Western Union was found to have allowed criminals to process transactions, even when the company realized its agents were helping scammers avoid detection. This process allowed for the payment of human smugglers as well as scamming thousands of US consumers. According to authorities, Western Union agents received payment in return for processing the transactions. The settlement will aid in providing refunds to victims of the scams as well as implementing an anti-fraud program.

US banking companies and other financial institutions [JURIST backgrounder] have been under intense scrutiny in the wake of the 2008 financial crisis. The Consumer Financial Protection Bureau ordered [JURIST report] Bank of America to pay $727 million for its illegal credit card practices. The DOJ criticized [JURIST report] the US Sentencing Commission in March 2015 after a federal panel introduced a proposal which would reduce prison time for white-collar criminals. In July 2015 Citigroup, Inc. agreed [JURIST report] to pay USD $7 billion to settle a federal inquiry into mortgage-backed securities sold by the bank prior to the financial crisis. The US Supreme Court granted certiorari [JURIST report] in April 2015 to hear a mortgage lending case in which Countrywide failed to provide required information and the borrowers attempted to rescind the loan. In February 2015 the Supreme Court heard oral arguments [JURIST report] on a subprime mortgage fraud case. Earlier that month JPMorgan Chase paid [JURIST report] a USD $614 million settlement to the US government for its role in approving unqualified mortgages for government insurance.

THIS DAY @ LAW

Indian National Congress founded

The Indian National Congress (INC) was founded on December 28, 1885 in Bombay (now Mumbai), India. In subsequent decades, the so-called Congress Party would advocate for Indian independence from the UK, which was eventually achieved in 1947. The first Prime Minister of independent India, Jawaharlal Nehru, was elected as a member of the INC. Learn more about the history and founding of the Indian National Congress.

Congress recognized Pledge of Allegiance

On December 28, 1945, Congress officially recognized the Pledge of Allegiance and encouraged its recitation in schools. The Pledge was supposedly written in 1892 by Francis Bellamy, a Baptist minister, to celebrate the 400th anniversary of Columbus Day. The words “under God” were added by Congress in 1954. The revised version of the Pledge was the subject of litigation before the United States Supreme Court originally brought by Michael Newdow, a parent who unsuccessfully objected to his daughter's school district policy requiring daily recitation of the Pledge. The court ruled that Newdow had no standing.

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On December 28, 2007, the Kingdom of Nepal's interim parliament ended the country's monarchy and established the Republic of Nepal. Free elections were held on April 10 of the following year to elect a Constituent Assembly.

Learn more about the rise of democracy in Nepal.