The Federal Bureau of Investigation is reportedly in the early stages of an investigation into how American Express (AXP) misrepresented its foreign exchange pricing in order to win over corporate clients.
According to a breaking report by The Wall Street Journal that cites individuals familiar with the matter, the FBI began its investigation in August after a separate report by the Journal that revealed that American Express’s foreign-exchange unit had recruited business clients with offers of low currency-conversion rates, only to raise prices without warning after the fact.
The FBI is currently in the fact-gathering stage of the investigation, which is being run out of the Beauru’s Washington field office and is awaiting the company to respond to a list of questions
The report also indicates that the Office of the Comptroller of the Currency also is looking into how American Express disclosed pricing to customers. The practice of offering lower pricing just to markup fees after a client has signed-up has been ongoing since 2004, according to the Journal.
American Express has not yet released a public statement addressing the allegations or the current FBI investigation, but the company’s stock price began to drop in late trading on Wednesday and is currently down over 1%.
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.