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Amex whistleblowers and shady tax practices

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Anonymalous
Valued Contributor

Amex whistleblowers and shady tax practices

https://www.businessinsider.com/american-express-small-business-card-marketing-layoffs-2023-7
Paywalled.

 

This is a lengthy piece of investigative journalism, and hard to summarize. But to hit the highlights: Amex introduced a product aimed at small and medium sized businesses called Premium Wire, where Amex would wire a payment to a payroll company for a fee ranging from 1.77% to 3.49%. In return, the customer would receive 1 MR point per dollar wired, which could be redeemed for 1.25% CB into a Charles Schwab account.

 

This wouldn't normally be a very good trade off, but Amex promoted the fee as a business deduction, which could reduce the fee enough for the company to have a positive return. In addition, the MR points could be earned by individuals, so Amex promoted this as an opportunity for business execs to grow their own personal wealth at their company's expense.

 

A small sales unit of several hundred Amex employees promoted this heavily, leading to multi-million dollar commissions.

 

This was all ethically and legally dubious, and has apparently led to several investigations, though they don't seem to have gone anywhere (the article is very vague on this). The question is whether the small sales unit was a rogue group who acted outside of company policy (Amex's company line), or whether they were acting under the instructions of senior management, and are being used as scapegoats (according to the whistleblowers).

 

Most of the small unit have been fired or laid off, and the others have been reassigned to less lucrative positions. Their commissions have been canceled. They were forced to sign gag orders in order to get severance packages, or reassignment bonuses, so nobody's talking publicly. Nobody in senior management was punished, and some have been promoted.

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markbeiser
Established Contributor

Re: Amex whistleblowers and shady tax practices

Banksters doing bankster things, nothing to see here, move along.

Back to gardening until Late February 2025.
Current FICO8:
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Lou-natic
Established Contributor

Re: Amex whistleblowers and shady tax practices


@markbeiser wrote:

Banksters doing bankster things, nothing to see here, move along.


More news at 11!Smiley Very Happy

 

Is it shady and "unethical" maybe...I really don't care as long as it didn't harm individual people. If it did harm normal people then it is an issue.

If the only butthurt is coming from government bureaucrats I'm unable to be upset about that.




3/3/24
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