American Express has been ordered to pay over $138 million following a wire fraud investigation that revealed the company misled small and mid-size businesses regarding tax advice related to its wire products. U.S. Attorney for the Eastern District of New York, Harry Chavis, stated that American Express falsely claimed that fees associated with these products were tax-deductible. This misrepresentation led to significant financial repercussions for affected businesses. An internal review conducted in early 2021 resulted in the termination of approximately 200 employees, and by the end of that year, the problematic products were phased out. The settlement includes a $77.7 million criminal fine and a $60.7 million forfeiture, alongside a separate civil settlement of $108.7 million with the U.S. Department of Justice. Reports indicate that American Express utilized “dummy” Employer Identification Numbers for credit card accounts, further complicating the issue. In response to these findings, the company has committed to improving its practices and has taken voluntary actions since the issues were identified. This situation unfolds against the backdrop of American Express's recent partnerships aimed at expanding its services in various markets, including its collaboration with Flutterwave to enhance payment options for Nigerian e-commerce businesses. Flutterwave's new feature allows Nigerian businesses to accept American Express payments, which is expected to boost their sales and customer reach. Olugbenga ‘GB’ Agboola, CEO of Flutterwave, emphasized the benefits this integration brings to e-commerce businesses, allowing them to tap into a broader market. [3abeb6d5] [6bf3fcf6] [60af8615] [200b136f]