Government Stimulus

The Department of Justice said that Birmingham, Alabama-based Regions sought forgiveness from the Small Business Administration for a Paycheck Protection Program loan that the bank should have known did not qualify.

The bank fired a manager for originating suspicious loans but later asked the SBA to forgive them, prosecutors say. The case ended in a $7.7 million settlement.

The pandemic-era program yielded over $60 billion in fraudulent payments, with prosecutions expected for another five years.

The show business-themed restaurant, which benefited from a federal loan near the start of the pandemic, says it now owes millions thanks to the Miami-based bank's "fraud, negligence, and misrepresentations." A BankUnited spokesperson declined to comment.

Democratic Sens. Dick Durbin and Gary Peters of Illinois, and Ron Wyden of Oregon, have released a $1.3 billion piece of legislation to target identity fraud in government-related pandemic programs and empower investigators.

Here is a highlight of 10 great American Banker Magazine features from the year. Topics range from redlining to the Most Influential Women in Fintech.

John Paul Dillon pleaded guilty to nearly $1 million in fraud related to COVID-19 emergency small-business programs, including the Payroll Protection Program and the Economic Injury Disaster Loan Program and a fraudulent loan application for a mortgage.

A 40-year-old limit of just 14 nondepository 7(a) lenders is set to expire May 12 despite concerns by lawmakers and opposition from banks and credit unions.

Billions were lost to fraud during PPP. Now, prosecutors are increasing efforts to recoup taxpayer money, leaving lenders worried they could be put under the microscope next.