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CARES Act Financial Institutions

Husch Blackwell LLP

False Claims Act Insights - DOJ’s Reliance on FCA to Pursue Covid-Related Fraud

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Host Jonathan Porter welcomes Boston-based litigator Bob Peabody to the show to discuss the Department of Justice’s use of the False Claims Act to pursue civil actions in connection with CARES Act fraud. Programs established...more

McGlinchey Stafford

Third Circuit Illustrates Federal Court Presumption for Exercising Concurrent Jurisdiction

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Arsenis v. M&T Bank is a tale of two cases. The bank brought an action against Ms. Arsenis to foreclosure on a mortgage loan in New Jersey Superior Court. Through a combination of defenses and counterclaims in the foreclosure...more

Buchalter

PPP Lender Liability, Enforcement, & Fintech Challenges

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The Paycheck Protection Program (“PPP”) emerged as a lifeline for small businesses grappling with the unprecedented challenges of the COVID-19 pandemic. Lenders navigated a landscape of regulations that Congress quickly...more

Lippes Mathias LLP

The Rise and Fall of the Paycheck Protection Program

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The Long-Term Effects Felt by Lenders Nationwide. As a result of the United States government instituting the Paycheck Protection Program (“PPP”), companies nationwide have defaulted on hundreds of thousands of PPP loans,...more

Orrick, Herrington & Sutcliffe LLP

DOJ Appears to Shift Focus to Lenders in Paycheck Protection Program Investigations: What You Need to Know

The Department of Justice appears to be shifting its focus from investigating fraudulent behavior by Paycheck Protection Program (PPP) borrowers to investigating lenders and related institutions....more

Jenner & Block

Government Contracts Legal Round-Up | 2022 Issue 18

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Welcome to Jenner & Block’s Government Contracts Legal Round‑Up, a biweekly update on important government contracts developments. This update offers brief summaries of key developments for government contracts legal,...more

Bass, Berry & Sims PLC

Government Announces First FCA Settlement with PPP Lender

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The Department of Justice (DOJ) announced on September 12, the first-ever False Claims Act (FCA) settlement with a Paycheck Protection Program (PPP) lender. Prosperity Bank, a Texas-based regional bank, agreed to pay...more

Bilzin Sumberg

Fintechs Face DOJ, House Scrutiny Over PPP Lending

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In a June 3, 2022 court filing, Kabbage, Inc. (doing business as KServicing), a fintech lender, disclosed that it is under investigation by the U.S. Department of Justice (“DOJ”) under the False Claims Act. The investigation,...more

Sheppard Mullin Richter & Hampton LLP

DOJ Investigating FinTech Over PPP Loans

On June 3, a federal court filing in the Southern District of Florida by an Atlanta-based FinTech company revealed that the small business lender is under DOJ investigation for alleged PPP loan approval practices. According...more

Spilman Thomas & Battle, PLLC

Promissory Notes - Banking & Finance Insights, Volume 2, Issue 6

SOFR Gaining Momentum as Drop Dead Date for Libor Nears - "Transition from US dollar Libor to its preferred alternative, SOFR, is going surprisingly well, though treasurers are having to grapple with some operational...more

Cadwalader, Wickersham & Taft LLP

FRB Issues Enforcement Actions against Bank and BHC Employees for Alleged CARES Act Fraud

The Federal Reserve Board (“FRB”) announced on April 5 that it had entered into six separate consent orders with individuals who were previously employed at a state member bank or bank holding company (“BHC”) within the FRB’s...more

Fox Rothschild LLP

Bank Fraud Involving PPP Loans Could Lead to Prison Time, Even for Relatively Small Advances

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The U.S. Department of Justice has recently begun charging defendants with bank fraud in relation to Paycheck Protection Program loans as part of its continuing efforts to investigate and prosecute individuals for crimes...more

Spilman Thomas & Battle, PLLC

Promissory Notes - Banking & Finance Insights, Issue 6

Welcome to our sixth issue of Promissory Notes -- our e-newsletter focused on banking and finance insights. SBA to Drop Its Review of PPP Loans of $2 Million and Above - "The effort marks an about-face for the agency...more

Woods Rogers

Direct Deposits of Child Tax Credits are Exempt from Creditor Process

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Banks are reminded that child tax credit payments made by direct deposit are exempt from creditor process. In particular, the Virginia law (Code §34-28.3) provides an exemption for any “emergency relief payment” made in...more

Baker Donelson

PPP Oversight: Congress Turns Its Focus to the Agency Diligence

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On March 25, 2021, Chairwoman of the House Committee on Oversight and Reform Carolyn Maloney and the Select Subcommittee on the Coronavirus Crisis released a staff memo highlighting "new evidence" of the Trump...more

Steptoe & Johnson PLLC

Federal Authorities Focusing on PPP Fraud

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With the light at the end of the tunnel getting brighter on our pandemic journey, the legal realities are only just beginning. The Department of Justice has prioritized the prosecution of fraud arising from the Paycheck...more

Spilman Thomas & Battle, PLLC

Promissory Notes - Banking & Finance Insights, Issue 3

House Passes Cannabis Banking Bill - "The House passed the same bill in 2019 by a similar margin, but it stalled in what was then the GOP-controlled Senate." Why this is important: The Safe Banking Act, if passed, will...more

Ballard Spahr LLP

Protection of Federal Stimulus Payments from Creditors

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In the federal government’s ongoing effort to revive the U.S. economy and help people harmed by the economic damage wrought by the coronavirus pandemic, an important detail has gone under-noticed: the most recent set of...more

Bradley Arant Boult Cummings LLP

CFPB Rescinds 2020 Policy Statements Issued Due to COVID-19

On March 31, 2021, the Consumer Financial Protection Bureau (CFPB) rescinded seven recent policy statements and one bulletin in an effort to ensure compliance with consumer protection laws and reinforce its supervisory and...more

K&L Gates LLP

COVID-19: Financial Institutions and Loan Recipients Will See Increased Congressional and Inspector General Investigations on...

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The economic response to the pandemic will continue to generate significant investigative scrutiny by Congress, inspectors general, and law enforcement—likely for years to come. The House Select Subcommittee on the...more

McDermott Will & Emery

Congressional Investigations during the 117th Congress: What to Expect

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Although control and leadership of the US House of Representatives did not change hands as a result of the 2020 elections, President Joe Biden’s victory and the Democrats’ Senate runoff victories in Georgia are already having...more

King & Spalding

Prosecutors Using FIRREA to Investigate Pandemic Conduct

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The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”) is a powerful tool in the prosecutorial arsenal. Due to its long statute of limitations, expansive penalty provision, and low civil burden of...more

Foley & Lardner LLP

FinCEN Advisory and Notice on Financial Crimes Targeting COVID-19 Economic Impact Payments

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On February 24, 2021, the Financial Crimes Enforcement Network (FinCEN) issued an advisory alerting financial institutions to the potential for fraud and other financial crimes related to Economic Impact Payments (EIPs) and a...more

Ballard Spahr LLP

FinCEN Warns Financial Institutions About Economic Stimulus Aid Scams

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The Financial Crimes Enforcement Network (“FinCEN”) issued on February 24, 2021 “an [A]dvisory to alert financial institutions to fraud and other financial crimes related to Economic Impact Payments (EIPs), authorized by the...more

Nutter McClennen & Fish LLP

Nutter Bank Report: February 2021

HUD, VA, and USDA Coordinate Extensions of COVID-19 Relief for Homeowners - The U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Veterans Affairs (VA), and the U.S. Department of Agriculture...more

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