Wachovia agrees to pay restitution to victims of its telemarketing customers

Interesting news today from the Office of the Comptroller of the Currency: Wachovia Bank will pay $144-million to settle charges that it allowed telemarketers to use its accounts to help them take millions of dollars from elderly people across the country. The federal Office of the Comptroller of the Currency said Friday that  Wachovia failed to act against the telemarketers even after the victims and their banks complained they were being defrauded.

The government said the telemarketers, including one based in Largo, obtained bank account information from their victims while selling vouchers for discount travel and products or offering free gifts or free trial memberships. The information was then used to draft money out of the victims’ accounts and deposit it in the Wachovia accounts of the telemarketers and payment processors. One of the companies was FTN Promotions of Largo, subject of this FTC lawsuit last year. I think it's interesting that Wachovia was not accused of any fraud but of failing to have the systems in place to adequately respond to the complaints of fraud and then do something about them. Wachovia, incidentally, says it no longer allows pure telemarketing companies to have accounts.

Comments

Yes it is amazing Pearlman folks let this one slide, or maybe they are trying to put it behind them, all the negativity, no matter it is very relevant to the EISA plight. Where are the good lawyers?

A real time event presents itself and no one comments...Hello to those who think they will see a cent from Lou...This is where the people/Banks come into play.....Hopefully....Anyone holding onto hidden money being found needs to refocus...

Ok, systems in place at Wachovia were inadequate, and they pay $144 million restitution. Obviously the systems Pearlman used were negligent as well. Where are the good lawyers?

wrong blog/website

this is for Lou Pearlman and his scam companies

So THIS was what the OCC was doing while mortgage brokers and mortgage lenders were running amok.