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Violation Tracker Individual Record

Company: Kabbage, Inc. d/b/a KServicing
Penalty: $120,000,000
Year: 2024
Date: May 13, 2024
Offense Group: government-contracting-related offenses
Primary Offense: False Claims Act and related
Violation Description: Bankrupt lender Kabbage, Inc. d/b/a KServicing, agreed to resolve allegations that it knowingly submitted thousands of false claims for loan forgiveness, loan guarantees, and processing fees to the U.S. Small Business Administration (SBA) as part of the Paycheck Protection Program (PPP), in violation of the False Claims Act (FCA). 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. The resolution consists of two separate settlements with KServicing Wind Down Corp., that together provide the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of up to $120 million. The amount the government will recover on this claim will depend on the ultimate amount of assets available to the bankruptcy estate for distribution to unsecured creditors.
Level of Government: federal
Action Type: agency action
Agency: U.S. Attorney-District of Massachusetts
Civil or Criminal Case: civil
Source of Data: (click here)
Archived Source: (click here)
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.