American Express to pay $230 million to settle fraud probe

The total includes more than $138 million as part of a non-prosecution agreement with federal prosecutors in Brooklyn, New York, related to allegations that American Express gave customers “inaccurate tax advice” for two wire products.

Separately, the banking giant will pay $108.7 million to resolve claims by the Department of Justice’s Civil Division that it deceptively marketed credit cards to small businesses, among other allegations.

The big settlement amount follows recent agreements by other large companies, including Mastercard and Block, to settle claims from prosecutors or regulators.

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