KeyBank to Pay $7.77 Million to Settle PPP Fraud Allegations

KeyBank allegedly sought forgiveness on fraudulent PPP loans

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.

KeyBank to Pay $7.77 Million to Settle PPP Fraud Allegations

KeyBank will reportedly pay $7.77 million to settle allegations that it sought forgiveness for fraudulent loans from the pandemic-era Paycheck Protection Program (PPP). The settlement involved nearly $6 million of Small Business Administration loans that a branch manager employed by the bank allegedly secured by encouraging business owners to submit loan applications in which they overstated the amount of their payroll expenses and the…