Wachovia Corp. (WB) has begun to reimburse victims of a telemarketing fraud

Wachovia Corp has begun to reimburse victims of a telemarketing fraud as part of its April settlement with U.S. banking regulators, mailing nearly 750, 000 checks totaling more than $150 million to the victims.The case involves relationships the bank had with several telemarketers and payment processors that obtained bank-account information over the phone from thousands of elderly and poor consumers by offering to sell them identify-theft certificates, discount travel vouchers and other questionable products or services, according to the Office of the Comptroller of the Currency, a division of the Treasury Department that regulates U.S. banks.
The OCC's central allegation against Wachovia was that some of the bank's officials knew about the deceptive telemarketing practices but failed to take quick action to resolve the problem. The regulator said Wachovia "profited from these activities in the form of fees collected from and balances maintained at the bank by the payment processors and telemarketers."In addition to the checks, victims who believe they have been charged bank fees because of unauthorized withdrawals are entitled to compensation. Victims will receive a claim form for bank fees along with the checks.
"These victims were lulled by fraudulent telemarketers into a false sense of security to give up their confidential banking information," said Acting United States Attorney Laurie Magid.Wells Fargo & Co. (WFC) agreed to acquire Wachovia in October amid questions about the company's viability.