PNC Financial Gets U.S. Government Subpoena on Jade Case

Nov. 6 (Bloomberg) -- PNC Financial Services Group Inc. 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., 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.

To contact the reporter on this story: Elizabeth Dexheimer in New York at edexheimer@bloomberg.net