Legal issues and news

KServicing, a SoftBank-backed small-business loan servicer, filed for bankruptcy after the company, which holds old loans made by the online lender Kabbage, was weighed down by allegations of overly lax lending under the U.S. government's Paycheck Protection Program.

A criminal group called Prilex has stolen millions in a scheme involving fake repair people installing malware on point of sale terminals.

When local prosecutors in Los Angeles investigated fake accounts at the San Francisco bank, they were hampered by a provision of state law that prevented them from issuing subpoenas before filing suit. That problem has been remedied under legislation signed by Gov. Gavin Newsom.

The Biden administration was accused in a lawsuit by six Republican-led states of overstepping its authority with a plan to forgive federal student loans.

Victims of Bernard Madoff's massive Ponzi scheme will soon get another $372 million in payouts, bringing the total amount distributed from a government fund to more than $4 billion since the collapse of the fraudster's company in 2008.

Celsius Network Chief Executive Alex Mashinsky, who founded the embattled crypto startup and served as pitchman for the sky-high yields it promised to its thousands of investors, is stepping down as the company works its way through bankruptcy.

Russian billionaire Petr Aven, fighting a U.K. investigation for evading sanctions, used companies supposed to manage expenses for his luxury mansion as a personal "piggy bank," according to British authorities.

Financial institutions continue to push back against efforts to be held liable when a consumer is tricked into sending a payment that later turns out to be a scam.

A female Commerzbank manager who was described by her manager as having an "unhealthy obsession with work" won her sex discrimination claim for a second time.

The breach was quickly followed by fake text and app messages to customers that appeared to come from the challenger bank.