![]() ![]() Womply did not immediately respond to a request for comment from the publication. “Along the way, we partnered with the and other authorities to ensure the integrity of the PPP while providing a traditionally overlooked population with access to the funds they needed and deserved.”Ī company spokesperson said the fintech is cooperating with the investigation. “As we reviewed increasing volumes of loan applications, we learned, adapted and enhanced our fraud detection capabilities and protocols,” Blueacorn said in a statement seen by American Banker. ![]() One-third of PPP loans that passed through Womply’s largest lending partner had indicators of fraud, including loans made to “businesses that claimed they paid workers significantly more than their industry’s norm to businesses that lacked a state business registration,” Clyburn wrote.įor Blueacorn, that proportion was nearly half, he wrote. “This failure may have led to millions of dollars worth of FinTech-facilitated PPP loans being made to fraudulent, non-existent, or otherwise ineligible businesses.” ![]() Jim Clyburn, D-SC, wrote in Monday's letters. “I am deeply troubled by reports alleging that financial technology (FinTech) lenders and their bank partners failed to adequately screen PPP loan applications for fraud,” the subcommittee’s chairman, Rep. The move came weeks after Reuters reported the Justice Department was investigating whether Kabbage and other fintechs miscalculated the amount of PPP aid to which borrowers were entitled. The panel, at that time, sent letters in May to Kabbage, BlueVine, Cross River Bank and Celtic Bank seeking documents and information regarding the fintechs’ handling of PPP loans. Monday’s letters represent an expansion of a probe into potential PPP loan fraud the subcommittee launched in May. ![]()
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