Consumer complaint received 2025-03-26 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: Comerica
State: VA

Complaint narrative:
Formal CFPB Legal Supplement Submitted by : XXXX XXXX XXXX Complainant Contact : XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ________________________________________ I. LEGAL BASIS FOR CFPB ACTION AGAINST COMERICA BANK AND XXXX This supplement outlines the statutory, regulatory, and fiduciary obligations breached by Comerica Bank and XXXX in connection with their role in processing unauthorized Electronic Federal Tax Payment System ( EFTPS ) transactions affecting XXXX XXXX XXXX. 
________________________________________ A. Regulation E ( 12 CFR Part 1005 ) Unauthorized Electronic Fund Transfers Regulation E imposes strict consumer protections on electronic fund transfers ( EFTs ) that are unauthorized. Comerica and XXXX processed IRS employment tax payments via EFTPS on behalf of third parties who lacked any authority to act on behalf of XXXX XXXX XXXX. 
Violation : Comerica and XXXX failed to confirm enrollment, consent, or legal authority prior to initiating fund transfers. 
Cited Provision : 12 CFR 1005.6 ( b ) ( 3 ) Liability for unauthorized EFTs where financial institutions fail to act on consumer notifications.

________________________________________ B. UCC Article 4A Unauthorized Wire Transfers ( Commercial Accounts ) Under UCC Article 4A, a payment order is not effective if the originator did not authorize it and the receiving bank failed to employ reasonable security procedures. 
Violation : Comerica accepted unauthorized EFTPS payment orders without authenticating the sender. 
Cited Provision : UCC 4A-202 ( b ) Effectiveness of payment order conditioned on use of reasonable authentication. 
________________________________________ XXXX XXXX  XXXX XXXX / XXXX Obligations ( 31 CFR Part 1020 ) Financial institutions must monitor transactions for suspicious activity and report when misuse or fraud is suspected. 
Violation : Comerica and XXXX failed to flag as suspicious the submission of EFTPS payments under an EIN with no enrollment or employee record.

Cited Provision : 31 CFR 1020.320 Requirement to file Suspicious Activity Reports ( SARs ).

________________________________________ D. Fiduciary Failure Under Treasury Financial Agent Obligations As designated financial agents of the U.S. Treasury, Comerica and XXXX owed fiduciary duties to : Safeguard federal tax funds ; Verify legal authorization for EFTPS transactions ; Prevent and correct known financial harm. 
Violation : Willful negligence and omission of basic due diligence to confirm authorization or rectify prior fraud. 
XXXX XXXX : XXXX XXXX XXXX Agreements, enforced under common law fiduciary principles. 
________________________________________ XXXX XXXX XXXX XXXX and XXXX XXXX XXXX IRS procedures require verification of third-party authorization ( POA, XXXX, or Reporting Agent status ) prior to accepting employment tax filings. 
Violation : IRS, Comerica, and XXXX collectively failed to check XXXX records or reject fraudulent third-party activity. 
Cited XXXX : XXXX XXXX Centralized Authorization File ( XXXX ) verification protocols. 
________________________________________ XXXX. CHART OF PREDICATE ACTS FOR XXXX ( 18 U.S.C. 1961 et seq. ) Date/Range Predicate Act Involved Parties Statutory Basis Summary XXXX Wire Fraud Bold Concepts/ Sagacious Financial 18 U.S.C. 1343 Submission of unauthorized employment tax filings and routing payments to unauthorized accounts XXXX Bank Fraud Comerica Bank, XXXX 18 U.S.C. 1344 Processed unauthorized EFTPS transactions and failed to detect financial red flags XX/XX/XXXX False Representation IRS Agent & Bold Concepts 18 U.S.C. 1001 IRS confirmed no employees existed, contradicting third-party returns filed without authority XXXX Partial Refund Issued IRS / Comerica 18 U.S.C. 1341 IRS refunded tax payments tied to unauthorized filings, proving knowledge of fraud Ongoing Conspiracy to Defraud All Parties 18 U.S.C. 371 Pattern of concealment, unauthorized filings, and fund diversion ________________________________________ This document supports the CFPB complaint against Comerica Bank and XXXX, and XXXX also be submitted in connection with federal litigation under the XXXX XXXX and Corrupt Organizations Act ( XXXX ) and other financial enforcement actions.

Company response to consumer: Closed with explanation