A study recently published by researchers from the University of Texas at Austin found that FinTech lenders had significantly higher rates of suspicious Paycheck Protection Program (PPP) lending when compared to traditional banks. 

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In fact, the study identified $76.3 billion in potentially fraudulent loans, $21.3 billion of which were originated by FinTech lenders and further found that FinTech loans are more than 3.5 times as likely to be initiated by someone with a criminal background.

As a result, the study has led to negative press coverage and increased reputational risk for some FinTech lenders. In a StoneTurn Client Alert, Julie Copeland and Ryan LaRue suggest three practical steps FinTech lenders must consider to mitigate legal and reputational risks related to the PPP loan study.

Read the Client Alert.

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About the Authors

Julie Copeland

Julie Copeland, a Partner with StoneTurn, brings over 20 years of experience advising the world’s largest financial institutions on anti-money laundering (AML) controls; issues related to economic sanctions, anti-bribery and […]

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Ryan LaRue

Ryan LaRue, a Managing Director with StoneTurn, has experience in forensic accounting and auditing, litigation advisory, and compliance and monitoring. Ryan’s experience includes performing forensic accounting investigations and assisting counsel […]

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