Kabbage Inc. Agrees to Resolve Allegations That the Company Defrauded the Paycheck Protection Program

The Justice Department announced today that now-bankrupt financial technology company Kabbage Inc., doing business as KServicing, has agreed to resolve allegations that it violated the False Claims Act (FCA) by knowingly submitting thousands of false claims for loan forgiveness, loan guarantees, and processing fees to the U.S. Small Business Administration (SBA) in connection with its participation in the Paycheck Protection Program (PPP). Kabbage is now winding down its operations as KServicing Wind Down Corp. after filing for Chapter 11 bankruptcy in the District of Delaware in October 2022. As part of the resolution announced today, the United States will receive a general unsecured claim in the bankruptcy proceeding. Read More