- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2022-09-14T17:57:00
A Houston-based regional bank will pay approximately $18,700 to resolve allegations it processed a Paycheck Protection Program (PPP) loan for an ineligible recipient in what is believed to be a landmark False Claims Act settlement.
Prosperity Bank, which holds $37.4 billion in assets across more than 270 banking locations in Texas and Oklahoma, processed a $213,400 PPP loan in May 2020 for a customer that bank employees knew was facing criminal charges, according to a press release issued Tuesday by Jennifer Lowery, U.S. attorney for the Southern District of Texas.
The bank received a $10,670 fee “to which it was not entitled” for processing the improper loan, the press release said.
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The Federal Reserve Board fined New York-based Popular Bank $2.3 million for processing Paycheck Protection Program loans despite finding significant indications of possible fraud in the loan applications.
The Department of Justice requested Rennova Health repay Covid-19 relief funds it received in 2020 as part of a whistleblower lawsuit against the healthcare services provider alleging ineligible use of the money.
A Florida-based investment fund will pay approximately $22,000 as part of a settlement resolving the first False Claims Act whistleblower case involving a Paycheck Protection Program loan in which the United States intervened.
Nine investment advisers will pay a total of $1.24 million to settle allegations that they violated the Securities and Exchange Commission’s marketing rule by disseminating advertisements with untrue or misleading information.
A privately held family company and its CEO, who announced a $10 billion bid to buy U.S. Steel without having the cash on hand, will pay $600,000 in penalties to the Securities and Exchange Commission for making materially false statements.
Seven public companies will pay a total of $3 million in fines for requiring employees to sign agreements containing provisions that impeded their ability to report misconduct to the Securities and Exchange Commission.
