JPMorgan found evidence employees and customers misused PPP funds and other stimulus programs

JPMorgan found evidence employees and customers misused PPP funds and other stimulus programs

JPMorgan has found evidence that some employees and clients misused loans from the federal Paycheck Protection Program (PPP), according to a memo bank leadership sent employees on Tuesday.

In the memo obtained by The Hill, the bank didn’t detail specific instances but said it had found customer wrongdoing involving the PPP, which was created through the March coronavirus relief bill to provide loans to struggling small businesses that could be entirely forgiven if used to pay employees and keep business afloat. 

“Unfortunately, we’ve also seen conduct that does not live up to our business and ethical principles — and may even be illegal,” the memo reads.  “This includes instances of customers misusing Paycheck Protection Program loans, unemployment benefits and other government programs. 

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“Some employees have fallen short, too. We are doing all we can to identify those instances and cooperate with law enforcement where appropriate.”

The memo was first reported on by The Wall Street Journal and Bloomberg. 

The program has approved more than $525 billion in loans to more than 5.2 million businesses with fewer than 500 employees. JPMorgan issued $28 billion in loans through the PPP, more than any other bank. 

The Department of Justice has charged several people with fraudulently obtaining millions in PPP loans. House Democrats reported more than $3 billion in problematic loans earlier this month.