NEW YORK, April 18, 2017 /PRNewswire/ — On April 14, 2017, the United States District Court for the Southern District of New York unsealed a False Claims Act qui tam case against HSBC BANK USA, N.A. (“HSBC”) alleging Small Business Administration (SBA) loan fraud and the United States Attorney’s Office for the SDNY simultaneously filed a complaint in intervention and announced the settlement of the entire civil fraud lawsuit, which is captioned United States of America ex rel. Jane Doe, v. HSBC Bank USA, N.A., case no. 11 Civ. 2968 (LGS).
As part of the settlement, HSBC agreed to pay the United States $ 2,118,861.36. The bank also admitted in the settlement agreement that it had sought reimbursement from the SBA on defaulted SBAExpress loans without revealing it had information suggesting the borrowers had submitted false information to HSBC to obtain the loans, or the fact that HSBC had included the loans on an internal list of fraudulent or potentially fraudulent loans.