American Express has agreed to pay $230 million to settle a federal probe into deceptive marketing practices and civil fraud allegations, the Department of Justice (DOJ) announced Thursday. Under the settlement released by the DOJ, American Express has agreed to pay a more than $108 million civil penalty to resolve allegations the company violated the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). In a separate release, the DOJ said American Express entered into a nonprosecution agreement, agreeing to pay more than $138 million for engaging in sales practices that provided consumers with incorrect tax advice.  The DOJ argued the New York-based company deceptively marketed credit card and wire transfer products by entering "dummy" employer ID numbers in the credit card accounts of its affiliate bank. An investigation was launched in 2021. “When financial companies engage in deceptive sales tactics or falsify information to cover up a failure to follow applicable regulations, they threaten the integrity of our financial system,” Brian Boynton, principal deputy assistant attorney general, said in a statement. Boynton said the settlement Thursday makes it clear that the DOJ will hold those accountable who violate consumers' trust in financial services. The DOJ alleged that from 2014 to 2017, American Express deceptively marketed credit cards by using an affiliated entity that made sales calls to small businesses. The company would then misrepresent the card rewards or fees, whether credit checks would be done without a consumer’s consent and submitting false financial information for customers like overstating a business’s income, according to the DOJ. The department also alleged the company deceived its federally insured financial institution to allow small businesses to acquire credit cards without the required identification. Employer identification numbers are required by law, but the DOJ alleges American Express used "dummy" numbers to open cards for small businesses from 2015 to 2016. The DOJ said American Express deceptively marketed wire transfer products to small business customers from 2018 to 2021. Employees allegedly told consumers that their wire transfer fees were tax deductible as business expenses when they were not. In a statement, American Express confirmed the settlement agreement, noting the company “cooperated extensively” with the agencies that were investigating, discounted products years ago, conducted an internal review and implemented other organizational changes. “Pursuant to the agreement and after crediting, American Express will pay approximately $230 million in total to resolve these matters,” the company said in a release. “We expect the resolution with the Federal Reserve to be finalized in the coming weeks.”