DOJ Reportedly Issues PPP-Related Subpoenas To Banks

In yet another sign that the federal government is following through on its warnings about PPP loan fraud, the Department of Justice, according to reports from Reuters, has issued grand jury subpoenas to several Wall Street banks related to an investigation into PPP loans. The subpoenas were reportedly issued by the DOJ's Fraud Section. The issuance of the subpoenas does not necessarily indicate wrongdoing by the banks. The government frequently issues subpoenas to both investigation targets and potential third-party witnesses. Although the banks were reportedly the subpoena recipients, the DOJ could be seeking information about loan applicants. As the loan processors, banks have a significant amount of information regarding the applicants and the certifications that they made. The subpoenas could be an initial step in investigating the veracity of the loan application certifications, including whether the applicants had a need for the funds. It is unclear which banks