Ex-MoneyGram compliance head sued in first-of-kind U.S. case

NEW YORK – Thomas Haider, the ex-compliance chief at MoneyGram International Inc., was sued for failing to ensure the cash-transfer firm had an effective anti-money-laundering program in what may be an unprecedented lawsuit by regulators.

Haider worked as chief compliance officer at MoneyGram, then based in St. Louis Park, until 2008. In its complaint Thursday in federal court, the Treasury Department said he failed to comply with the U.S. Bank Secrecy Act. It's seeking to recover $1 million and to bar Haider from "participating" in the affairs of any financial institution.

The suit, initiated by the Treasury's Financial Crimes Enforcement Network, or FinCEN, may be the first attempt by the U.S. to hold a compliance officer personally responsible for the anti-money-laundering failures of an employer, Ian Comisky, an attorney for Haider, said in a statement. MoneyGram, which is now based in Dallas, in 2012 agreed to forfeit $100 million to resolve U.S. charges that some of its agents defrauded customers.

Compliance officers work "as the first line of defense in the fight against fraud and money laundering," U.S. Attorney Preet Bharara said in a statement announcing the case. Haider "allowed criminals to use MoneyGram to defraud innocent consumers and then launder the proceeds," he said.

Haider's lawyers said the suit may actually deter compliance officers from establishing strong anti-money-laundering programs. A Treasury spokesman didn't immediately return a phone call seeking comment.

MoneyGram outlets are independently owned entities, often convenience stores and Internet cafes, that the company authorizes to send money through its transfer system. MoneyGram's agents own or operate those outlets.

MoneyGram knew as early as 2003 that its agents were scheming to trick victims into sending money through certain outlets to generate fees, prosecutors said in their 2012 case against the company.

Haider, chief compliance officer from at least 2003 to 2008, failed to ensure that MoneyGram had a policy to discipline agents the company suspected were involved in fraud or to terminate high-risk agents and outlets, according to Thursday's complaint.

"MoneyGram had a comprehensive anti-money-laundering compliance program," Comisky said.

The complaint doesn't name MoneyGram, which entered into a deferred-prosecution agreement with the U.S. in 2012.

"Tom Haider has not been an employee of MoneyGram since May 2008," the company said in a statement.