Bloomberg Law
Sept. 14, 2022, 5:35 PM

Bank Agrees to ‘First-Ever’ PPP Loan False Claims Act Settlement

Daniel Seiden
Daniel Seiden

Prosperity Bank will pay nearly $19,000 to resolve allegations it violated the False Claims Act by improperly processing a Paycheck Protection Program loan on behalf of an ineligible customer, according the US Attorney’s Office for the Southern District of Texas.

The settlement is believed to be the first settlement with a PPP lender under the FCA, the Tuesday announcement said.

Congress enacted the PPP in March 2020 to provide emergency financial support to those suffering the economic effects caused by the Covid-19 pandemic.

The government said Prosperity Bank approved a $213,400 loan for Woodlands Pain Institute PLLC in May 2020 ...

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