What:
A just-issued Congressional staff report raised concerns that certain financial technology companies (fintechs) were involved in processing improper loans through the Paycheck Protection Program (PPP) and recommended, among other things, that the Department of Justice (DOJ) investigate potential violations of the False Claims Act (FCA).
Background:
Program fraud by individuals and businesses taking out PPP loans has been widely publicized, and prosecution of this fraud remains ongoing. Separately, the Select Subcommittee on the Coronavirus Crisis (Select Subcommittee) has been focusing on the role of fintechs in processing PPP loans beginning in mid-April 2020. On December 1, 2022, the Select Subcommittee issued a report alleging that fintechs “facilitat[ed] a disproportionately high rate of fraudulent and otherwise ineligible loans through the [PPP]” and “handled 75 percent of the approved PPP loans that had been connected to fraud by [DOJ].”
In addition to examining specific companies in its report, the Select Subcommittee advised that “[a] comprehensive review of lenders and their third-party service providers will be crucial for lawmakers to better understand what worked and what failed in the PPP so as to incorporate those lessons into future relief programs.”
The Select Subcommittee also recommended that DOJ investigate potential FCA violations related to whether fintech companies, employees, or principals made, or caused to be made, any false statements in...
The legal representatives of Awerco Construction Limited have issued a 24-hour ultimatum to the Ministry of Health, demanding an immediate retraction and apology over a press release concerning th...