Prosperity Bank to pay $19K in first PPP lender false claims settlement


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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