Bank / Credit Union

JPMorgan investigates misuse of PPP funds by employees, clients

Photo provided by iStock

September 10, 2020

In an internal memo to more than 250,000 staff members, JPMorgan Chase's operating committee, led by CEO Jaime Dimon, announced it is investigating the role of employees and clients in the potential misuse of Paycheck Protection Program funds, according to a Forbes report.

The company "has seen conduct that does not live up to our business and ethical principles — and may even be illegal. This includes instances of customers misusing Paycheck Protection Program loans, unemployment benefits and other government programs," stated the memo, according to Forbes.

JPMorgan Chase facilitated the greatest amount of PPP money of any lender — $29.4 billion among more than 280,000 loans, according to the Small Business Administration data.

A memo to the Majority Staff of the House of Representatives from the Members of the Select Subcommittee on the Coronavirus Crisis earlier this month gave a preliminary analysis of the Paycheck Protection Plan and where the funds were distributed. The memo noted:

• More than $1 billion in PPP funds went to borrowers who received multiple loans through the program.
• $96.3 million in funding went to borrowers suspended from doing business with the federal government.
• Nearly $3 billion in loans went to more than 11,000 borrowers with information that did not match or meet the federal government's award criteria.