PNC Financial Services Group Inc. (PNC) said it received a subpoena from the U.S. Small Business Administration about the bank’s relationship with Jade Capital & Investments LLC.
The subpoena concerned possible bank fraud and money laundering by people associated with Jade, Pittsburgh-based PNC said today in a regulatory filing. The bank said it’s cooperating with the probe.
Jade, a loan broker based in Woodbridge, Virginia, used phony documents to persuade SBA officials to back loans through banks including PNC and M&T Bank Corp. (MTB), U.S. Attorney Rod Rosenstein said in March. A broker at Jade was sentenced in June to more than 15 years in prison for conspiring to commit bank fraud, Rosenstein said.
Harry Trainor, an attorney at Trainor Billman Bennett & Milko LLP in Annapolis, Maryland, who represented one of the Jade brokers, didn’t immediately respond to a phone message requesting comment. Fred Solomon, a PNC spokesman, declined to comment.
PNC rose 0.8 percent to $73.88 in New York. It has advanced 27 percent this year.
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