Popular Bank agrees to $2.3M PPP loan fraud penalty
Popular Bank has agreed to pay a $2.3 million fine to the Federal Reserve in connection with six fraudulent Paycheck Protection Program loans that the bank originated.
The New York division of Popular, a Puerto Rican bank, agreed to the penalty after self-reporting that it had funded the $1.1 million in falsely obtained loans in August 2020, according to an order from the Fed.
The $71 billion-asset bank cooperated with the Fed's investigation, agreed to the fine without admitting or denying the Fed's allegations and has undertaken "substantial remediation related to its ineffective controls and procedures," the order states.
"We have consented to the imposition of the order and the civil money penalty. The order does not impose any other obligations on the bank," a Popular spokesperson wrote in an emailed statement.
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