In a recent article for The Wall Street Journal Risk & Compliance Journal by Richard Vanderford, Schulte Roth & Zabel partner Melissa Goldstein discussed a recent fine by the Federal Reserve against a New York-based bank for allegedly failing to stop fraud by Paycheck Protection Program (“PPP”) applicants.

According to Melissa, because of the volume of PPP loans issued, more enforcement actions could be on the way. “We were in the middle of a pandemic at the time those loans were issued, so compliance staff was stretched as well,” she said. “Folks were trying to get relief quickly, and some bad actors slipped through.”

Read the article here.