What has happened to the $4.4 million that was fraudulently transferred to Wells Fargo Bank last year?
The Senate on Monday passed a resolution authorizing the Senate Select Investigative Committee to find out the answer to that question.
According to the resolution, it has been over one year since Treasurer Malemo Tausaga’s revelations to the Senate about the transfer to Wells Fargo and no update has been provided to the Fono. Senators are concerned that these federal funds will be lost permanently if not followed up on.
The resolution notes that in previous hearings, LBJ officials informed senators that the scammed money has been reimbursed to LBJ in its entirety. The Senate needs confirmation of such from LBJ and the Treasurer.
At a hearing of the Senate Budget and Approopriations Committee, in January this year, the Treasurer testified that all but just over $100,000 of the transferred amount has been returned by Wells Fargo Bank. He said that they are working with the Federal Bureau of Investigations on getting the remaining funds returned to ASG.
The senate resolution approved asks what is treasury doing to assist the FBI in their investigation, if the FBI has questioned Treasury employees and whether Treasury has turned over records and or documents to assist with the FBI investigation. The measure also asks if Treasury has dealt with any similar fraudulent scams before or since the LBJ transfer and if Treasury’s IT division has put in safeguards to detect and prevent such scams in the future.
The Chairman of the Senate Select Investigative Committee, Senator Togiola Tulafono has scheduled a hearing on the matter for October 11.
