Fed bars former bank employee over fraudulent PPP loans

A former employee of Ally Bank, Detroit, Mich., who took out two coronavirus aid-related Paycheck Protection Program (PPP) loans for herself based on fraudulent claims has been permanently barred from participating in the affairs of any federally insured financial institution.

The Federal Reserve Board in a consent order, said that Shebrelia Jackson-Davis, while working as a credit associate at Ally Bank in Lawrenceville, Ga., applied for and obtained a $20,833 PPP loan based on “materially false and fraudulent representations” and used the funds for personal and other unauthorized expenses, violating the loan terms and applicable laws and regulations. It said she applied for and obtained a second PPP loan for the same amount in 2021, after having resigned from the bank, for a total of $41,666 in loan proceeds received.

Federal Reserve Board issues enforcement action with former employee of Ally Bank