Popular Bank fined $2.3M by Fed over fraudulent PPP loan approvals


The Federal Reserve Board fined New York-based Popular Bank $2.3 million for processing Paycheck Protection Program (PPP) loans despite finding significant indications of possible fraud in the loan applications.

The Fed said Popular Bank failed to report the potential fraud in a timely manner, as required by the Small Business Administration (SBA).

According to the Fed’s order, Popular Bank processed six PPP loans in August 2020 worth $1.1 million, “despite having detected that the loan applications contained significant indicia of potential fraud.”

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