Regions Bank has agreed to pay the United States $4.9 million to resolve civil allegations connected to a Paycheck Protection Program loan forgiveness approval that the government says should not have been granted.
According to the DOJ, the matter involved a PPP loan obtained by Gregory A. DeLine, who owned or operated several businesses, including Midwest Mortgage Associates Corporation d/b/a Total Lending Concepts, Amega Sales Inc., and GKD Management, L.P.
The government alleged that Regions approved full forgiveness of the loan even though the loan was not eligible for forgiveness.
The public settlement documents do not identify the exact defect that made the loan ineligible. That distinction matters. The case should not be overstated as a public finding that the borrower committed fraud or that Regions admitted wrongdoing.
The DOJ framed the civil resolution against Regions under an unjust enrichment theory, meaning the government alleged Regions received money it should not have received after approving forgiveness.
The Paycheck Protection Plan (PPP) was created under the CARES Act to provide emergency relief during the COVID-19 pandemic. Borrowers could seek forgiveness if funds were used for payroll and other approved expenses. Once forgiveness was approved, the SBA paid the lender the forgiven principal and interest.
For Find Corporate Waste, this case highlights why public-data review must examine the full structure of relief programs: borrower eligibility, certifications, lender review, forgiveness approval, and federal reimbursement. A single improper forgiveness approval can create millions in taxpayer exposure.
Public records can identify the pattern, but insider knowledge transform that pattern into an actionable lead potentially worth millions.