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Toomey Quoted in American Banker on First Paycheck Protection Program Lender Penalty

November 18, 2022

Financial Services partner Kevin Toomey was quoted in an American Banker article, “Lenders face uncertain legal risks amid PPP fraud investigations.” The story discusses the recent settlement with Prosperity Bank, in which the bank agreed to pay fines resulting from violating the False Claims Act and lending money to someone ineligible for a PPP loan.

Toomey stated that this case could be the beginning of a wave of PPP lender cases. Toomey also noted that the Department of Justice’s decision to cite the False Claims Act highlights the variety of tools the government can use in investigations and enforcement.

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