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DOJ Subpoenas Wall Street Banks for Records on Coronavirus Relief Loans: Report

The Justice Department has already charged some alleged fraudsters over their applications to the Paycheck Protection Program.

The Justice Department has sent grand jury subpoenas to several large Wall Street banks as part of a probe into misuse of federal coronavirus relief funds, Reuters reports. The Paycheck Protection Program, $660 billion of aid allotted to small businesses to keep employees on the payroll during the economic downturn brought on by the coronavirus, saw large companies receive tens of millions while actual small businesses could barely submit applications. The Department of Justice has opened a widespread investigation of potential fraud and already charged a number of businesses that allegedly lied in their applications. The Wall Street subpoenas may not imply the banks themselves are under investigation, as the DOJ could be reviewing clients’ financial histories.