PNC Pays $7.1M To Settle US Claims Over Shoddy SBA Loans

Law360, New York (January 25, 2013, 6:04 PM EST) -- PNC Bank NA agreed to pay the federal government $7.1 million to settle False Claims Act allegations that it improperly underwrote loans guaranteed by the U.S. Small Business Administration in connection with a Pennsylvania-based convenience store chain that eventually filed for bankruptcy, authorities said Friday.

The U.S. Department of Justice claims that PNC failed to engage in prudent lending standards when issuing loans for the purchase of Uni-Marts LLC convenience stores that were guaranteed by the SBA under its Preferred Lender Program.

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