Douglas County-based Western Union Co. is being investigated by U.S. regulators for possible securities fraud after former employees accused the money-transfer company of misrepresenting the performance of its digital unit, court documents say.
The Securities and Exchange Commission is reviewing the company’s 2011 and 2012 public statements that it planned to increase revenue at Western Union Digital, including and its mobile money-transfer business, to $500 million by 2015. That revenue was about $200 million in 2013, said spokesman Dan Diaz. In July, the company pushed the target to beyond 2015.
The investigation came to light Sept. 3, when the SEC filed a court action claiming the company had failed to comply with a subpoena for internal communications about the digital unit forecasts and performance. Western Union said it is “cooperating fully” with the SEC.
