Brian Cromwell and Steve Carey wrote an article in Carolina Banker on how financial institutions can prepare for investigations tied to the Paycheck Protection Program. 

"Federal investigators have already subpoenaed some banks for information related to their PPP lending," they wrote. "There are likely many more subpoenas to follow, as U.S. Attorney’s Offices and the Department of Justice more broadly have been increasing their investigations tied to the program and other forms of pandemic lending."

"In addition, private whistleblowers are bringing False Claims Act cases over PPP application fees," they noted. "And plaintiffs’ attorneys are seeking creative ways to use the Equal Credit Opportunity Act, state consumer protection laws, and other statutes to create a claim where one may not exist under the federal law that created the PPP."

"Banks can take proactive steps – right now – to prepare for those kinds of governmental and private inquiries," they said. 

Click here to read the full article starting on page 54 of the magazine. 

Carolina Banker is the quarterly magazine from the North Carolina Bankers Association.