By Andrew R. Johnson
Federal investigators have widened their probe of Western Union
Co. (WU) in an ongoing money-laundering investigation, the company
said Thursday.
Western Union received a second subpoena on May 18 from the U.S.
Attorney's Office for the Central District of California related to
a former agent, Shen Zhou International, according to the company's
quarterly report filed with the Securities and Exchange
Commission.
The new subpoena also sought materials related to another former
agent of Western Union, the filing said. The other agent was not
named in the filing.
A Western Union spokesman could not immediately be reached for
comment Thursday.
Western Union is the world's largest provider of money
transfers, which it sells through a global network of more than
500,000 locations. Agents include pharmacies, supermarkets,
check-cashing stores, banks and other retailers.
In May, the company said in a regulatory filing that it was
served with a federal grand jury subpoena on March 20 for documents
related to Shen Zhou, which was a former agent located in Monterey
Park, Calif. At the time, the U.S. Attorney notified Western Union
that "it is a target of an ongoing investigation into structuring
and money laundering."
The company is unable to estimate the amount of losses that
could result from any possible criminal charges or civil claims it
could face, the filing said.
Western Union's shares closed down 0.7% at $16.99 on
Thursday.
Write to Andrew R. Johnson at andrew.r.johnson@dowjones.com
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