Freshfield’s Aaron Marcu Named Corporate Monitor for Moneygram International

Freshfield’s partner Aaron Marcu has been named the corporate monitor for Moneygram International.

The monitorship will last for five years.

In November 2011, MoneyGram International – a global money services business headquartered in Dallas – forfeited $100 million and entered into a deferred prosecution agreement with the Justice Department in which it admitted to criminally aiding and abetting wire fraud and failing to maintain an effective anti-money laundering program.

Lanny Breuer, then head of the Criminal Division, said in November that “MoneyGram’s broken corporate culture led the company to privilege profits over everything else.”

“MoneyGram knowingly turned a blind eye to scam artists and money launderers who used the company to perpetrate fraudulent schemes targeting the elderly and other vulnerable victims,” Breuer said.

“In addition to forfeiting $100 million, which will be used to compensate victims, MoneyGram must for the next five years retain a corporate monitor who will report regularly to the Justice Department,” Breuer said.

Under the terms of the agreement, Moneygram submitted “a pool of three qualified candidates” to serve as monitor to the Justice Department.

One of those was Marcu.

The Justice Department interviewed the three and last month choose Marcu.

Marcu will be paid by the company.

Marcu declined to comment for this story.

This is Marcu’s second corporate monitorship.

His previous monitorship was in 2001 in connection with a non prosecution agreement in the Aurora Foods accounting fraud case.

 

 

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