Monday Round-Up: Loan Fraud Charges, eBay’s Open Banking, CFPB Change

Ten Charged in $9M COVID Loan Fraud, Facing Long Sentences

A federal grand jury has indicted ten individuals in a sweeping fraud and money laundering plot tied to COVID relief programs. Most notably, David Nathaniel Black, Jr., age 31, of Newnan, Georgia, faces up to 20 years per wire fraud count plus 2-year mandatory consecutive terms for aggravated identity theft, on top of potential jail time for more than 100 money laundering counts (each carrying up to 10 years).

Also charged are: Rashad Avery, Tara Batson, Chris Elvins Constant, Nicole Cooley, Reginald Douglas, Yvenord Guerilus, Carson Merice, Rise Robinson, and George Thompson, predominantly from Georgia and Florida. In addition to EIDL and PPP abuse, Black and Constant are accused of laundering fraudulent unemployment insurance proceeds, increasing their legal jeopardy.

Authorities say the group submitted inflated loan applications using stolen business and identity information, then spent the proceeds on luxury items like:

• $200,000 for a 2022 Bentley Bentayga;

• $350,000 for a 2020 McLaren 720S convertible;

• $142,680 for the down payment of a 2023 Mercedes-Benz G-Class Wagon; and

• $180,645 to pay the annual rent for a luxury home.

The scale of the fraud is staggering, and the DOJ’s crackdown is still in full force.

eBay Integrates Open Banking into Seller Capital Program

eBay is moving deeper into fintech. The company announced that it will integrate open banking technology into its Seller Capital program, which provides small business financing for merchants on its platform.

This shift means faster access to capital for sellers, as open banking allows secure, real-time data sharing between financial institutions and eBay’s lending partners. The integration is designed to reduce friction in the application process, improve risk assessments, and ultimately help small businesses scale without the bottleneck of traditional underwriting.

It’s another example of how big platforms are embedding financial services directly into their ecosystems. For brokers and lenders, the move highlights growing competition from non-traditional players who can leverage large user bases and tech efficiencies to deliver capital more seamlessly.

Appeals Court Reverses Ruling on CFPB Layoffs

A federal appeals court has overturned a temporary injunction that had blocked the Consumer Financial Protection Bureau (CFPB) from firing employees. The injunction, issued earlier this summer, had temporarily restricted the agency after a group of staff argued that their dismissals were retaliatory and potentially unlawful.

With the appeals court’s ruling, the CFPB now has broader authority to move forward with its planned layoffs and internal restructuring. While the court emphasized that employees may continue to pursue legal challenges through other avenues, the decision removes the immediate restriction that had tied the bureau’s hands.

The case underscores ongoing scrutiny of the CFPB’s structure and leadership powers, which have long been the subject of political and legal challenges. For now, the ruling provides CFPB leadership with flexibility as it adapts to evolving priorities, but it also signals continued turbulence for the agency as it balances regulatory oversight with its internal workforce disputes.