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ARTICLE · 29 JULY 2022

DOJ Investigating FinTech Over PPP Loans

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On June 3, a federal court filing in the Southern District of Florida by an Atlanta-based FinTech company revealed that the small business lender is under DOJ...

United StatesTechnology
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Matthew T. Lin
Matthew T. Lin
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On June 3, a federal court filing in the Southern District of Florida by an Atlanta-based FinTech company revealed that the small business lender is under DOJ investigation for alleged PPP loan approval practices. According to the FinTech, by August 2020, it processed over $7 billion in PPP loans to at least 300,000 small businesses.

In a motion to quash the government's subpoena in an unrelated PPP loan fraud scheme, the FinTech stated that "the Boston U.S. Attorney's Office has been investigating [the FinTech] under the False Claims Act, on the theory that [the Fintech] improperly approved PPP loans that were either obviously fraudulent or not within Small Business Administration ("SBA") parameters." Because of this ongoing investigation, the FinTech argued that "the subpoena presents an "undue – and, as importantly, unnecessary – burden" and jeopardizes the FinTech's ability to defend itself. The court denied the FinTech's motion.

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