Core Viewpoint - KeyCorp's unit will pay $7.77 million to settle allegations of violating the federal False Claims Act by submitting fraudulent Paycheck Protection Program loans for forgiveness [1][3] Group 1: Allegations and Settlement - The settlement is related to a branch manager in Conshohocken, Pennsylvania, who allegedly recruited business owners to inflate payroll expenses and employee counts in approximately 48 loan applications [2] - This fraudulent activity resulted in nearly $6 million in federal Small Business Administration loans, with the branch manager receiving incentive pay for opening accounts before the scheme was discovered [2][3] - The settlement includes about $6.2 million designated for restitution [3] Group 2: Legal Proceedings - The branch manager, Tommy Hawkins, pleaded guilty to a bank fraud conspiracy charge and was sentenced to 65 months in prison in 2024 [3] - Six other individuals faced related criminal charges, with four having pleaded guilty [3] Group 3: Context of the Paycheck Protection Program - The Paycheck Protection Program was established in March 2020 to assist Americans financially affected by the pandemic, providing forgivable loans to small businesses [4] - KeyCorp operates approximately 1,000 branches across 15 U.S. states and had assets totaling $187.4 billion as of September 30, 2025 [4]

Fraud & Legal Issues - FinTech founder pleaded guilty in Paycheck Protection Program (PPP) fraud scheme [1] Industry Risk - The case highlights potential risks of fraud within the FinTech industry related to government programs [1]

Fraud Allegation - A FinTech founder pleaded guilty in a Paycheck Protection Program (PPP) fraud scheme [1] Legal Implications - The case highlights potential legal and financial risks associated with PPP loan applications within the FinTech industry [1]