This statement makes sense. Lots of lenders report wild inaccuracies in data dump. This is not a
Summary
Exhibit 4, filed March 11, 2025 as Document 68-4 in Case 4:21-cv-00110-SDJ, is a nine-page email chain among Kabbage, Inc. employees dated July 16, 2020, with the subject line Reuters media request regarding SBA PPP loan data issues. The forwarded request from a Reuters reporter says SBA's reported PPP data appeared to contain systematic errors, including Kabbage loans listed in a million-dollar range to very small businesses, and asks whether Kabbage knew of data-entry issues. Kabbage's head of communications proposes a statement that some applications are inaccurately listed as approved and that approved does not necessarily mean funded, and notes that possible fraud cases were sent for further review. Kabbage's head of policy replies that the statement makes sense. The email also includes the reporter's list of flagged borrower names.
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Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 1 of 9 PageID #: 600
Exhibit 4
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 2 of 9 PageID #: 601
From: Sam Taussig[staussig@kabbage.com]
Sent: Thur 7/16/2020 8:00:49 PM (UTC)
To: Paul Bernardini[pbernardini@kabbage.com]
Cc: Robert Frohwein[rfrohwein@kabbage.com]; Kathryn
Petralia[kpetralia@kabbage.com]; Laura Goldberg[lgoldberg@kabbage.com]
Subject: Re: Reuters media request regarding SBA PPP loan data issues
This statement makes sense. Lots of lenders report wild inaccuracies in data dump. This is not a
Kabbage story.
Sam Taussig Kabbage, Inc.
Head of Policy 730 Peachtree Street NE
M: 301-412-9193 Suite 1100
www.kabbage.com Atlanta, GA 30308
On Thu, Jul 16, 2020 at 3:55 PM Paul Bernardini <pbernardini@kabbage.com> wrote:
Hey -- See below. I combed through these and there are a variety of statuses.
Applications were either closed, expired, returned, never signed or have
inconsistencies with SBA's data we never received SBA approval
As for a statement, I'm OK saying that if you all agree. Reconfirming SBA
inconsistencies helps shift attention away from fraud and instead to inaccurate data.
Exhibit 4 - Page 1
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 3 of 9 PageID #: 602
Also, I think it's helpful reporters recognize that an approved loan in SBA's dataset
does not necessarily mean funded:
Statement:
"Yes, we have seen inconsistencies with the SBA's data as some
applications are inaccurately listed as approved. Please also know that an
'approved' status does not necessarily mean funded as some loans may
have expired, were returned, withdrawn or are not yet signed."
NOTE: For the ones that may be fraud, I've sent it to that team for further review.
---------- Forwarded message ---------
From: Price, Michelle (Reuters) <michelle.price@thomsonreuters.com>
Date: Thu, Jul 16, 2020 at 10:36 AM
Subject: Reuters media request regarding SBA PPP loan data issues
To: pbernardini@kabbage.com <pbernardini@kabbage.com>
Dear Paul,
I’m a reporter for Reuters in DC covering the SBA PPP loan program.
I have noticed what look to be like systematic errors in the data SBA reported on the PPP
earlier this month. Many of the loans for Kabbage reported to be of between $1-$2 million
appear to be to one or two people businesses who would not qualify for such a large amount
(highlighted below). Also worth noting David Horvath nearer the bottom who appears to
have netted three large loans.
Given the number of companies below that look to be erroneous, I was wondering if you
might be aware of any systematic issues with the SBA data/data entry process that would
explain this.
As you may be aware, Radius Bank has said publicly that a systematic error caused many of
their small loans in the thousands to be reported as in the millions – some issue with the
decimalization being in the wrong place (it’s still not clear if Radius or SBA was to blame,
but Radius has told customers that the issue was with the SBA).
Exhibit 4 - Page 2
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 4 of 9 PageID #: 603
I’m trying to ascertain how widespread this systematic issue may have been and would be
grateful for any feedback Kabbage can offer.
Thanks in advance
Michelle Price
Reuters
202 604 1711
c $1-2 GODS ANOINTED YOUTH MINISTRY
million
c $1-2 ID EQUITIES, LLC
million
c $1-2 SPHYRAENA VENTURES LLC, https://bisprofiles.com/fl/sphyraena-ventures-l16000091504
million
c $1-2 ALL CARS US, https://www.zillow.com/homedetails/511-Lewandowski-St-Lyndhurst-NJ-07071
million
c $1-2 GEORGIA POWER COMPANY
million
c $1-2 LOLA'S LEVEL
million
c $1-2 DAILY BURNOUTS, LLC https://www.zillow.com/homedetails/17507-E-Orchid-Ln-Gilbert-AZ
million
Exhibit 4 - Page 3
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 5 of 9 PageID #: 604
c $1-2 1224 ROSEMARY, LLC
million
c $1-2 MY FD FINANCIAL GROUP LLC
million
c $1-2 ENERGY EFFICIENT CONSTRUCTION SOLUTIONS
million
c $1-2 1 PONCE DE LEON LLC
million
c $1-2 ENERGY SOLUTION SERVICES, LLC https://clustrmaps.com/c/1kcs88-53kj
million
c $1-2 PROPEL OPPORTUNITY FUND INC.
million
c $1-2 FLAIR GROUP INC
million
c $1-2 KEEPING THE BLUES ALIVE FOUNDATION INC https://keepingthebluesalive.org/contact/
million
c $1-2 FEDERAL CREDIT UNION
million
c $1-2 ELEXON SERVICES LLC https://opencorporates.com/companies/us_nj/0400179851
million
c $1-2
million REPAIRO LLC https://start.cortera.com/company/research/m0n8orp1m/repairo-llc/
Exhibit 4 - Page 4
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 6 of 9 PageID #: 605
c $1-2 DOG TRAINING WITH MARIO HOLLAND LLC https://www.linkedin.com/in/mario-holland-
million
c $1-2 THE EW LAW FIRM, LLC https://www.bizapedia.com/ga/the-ew-law-firm-llc.html
million
c $1-2 MB BOAT & RIDE CORP https://florida.intercreditreport.com/company/mb-boat-ride-corp-p190
million
c $1-2 ELITE FITNESS CONCIERGE LLC https://www.georgia-register.com/14011667-elite-fitness-c
million
c $1-2 R & M THERA INC
million
c $1-2 TRADEX CONSULTING GROUP LLC https://www.bizapedia.com/az/tradex-consulting-group-
million
c $1-2 NEW GENERATION ABUNDANT MISSION CHURCH OF GOD
million
c $1-2 POSSIBLE PAT LLC
million
c $1-2 PAPER TREASON LLC
million http://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=OfficerRegis
ACELLICLEMENTE%20L060001016540&aggregateId=flal-l06000101654-8050a517-2638-4c9
95818f5492c4&searchTerm=Bornacelli%20%20%20%20%20%20%20%20%20%20Paola&listN
c $1-2 BIG SHOT LLC
Exhibit 4 - Page 5
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 7 of 9 PageID #: 606
million
c $1-2 FINESSE TRUCKING & LOGISTICS LLC https://www.quicktransportsolutions.com/truckingco
million
c $1-2 THE GASPARDS GROUP HOME INC https://opencorporates.com/companies/us_fl/P19000055
million
c $1-2 JLITE MORTORS
million
c $1-2 EL CENTRO GROUP LLC
million
c $1-2 ORLANDO SALON LLC https://www.yelp.com/biz/orlando-salon-chicago-3
million
c $1-2 HEEL CRUSH BOUTIQUE, INC https://opencorporates.com/companies/us_fl/P19000047438
million
c $1-2 SMART TECH FLORIDA LLC https://opencorporates.com/companies/us_fl/L16000127165
million
c $1-2 MUIRHEAD-GRAHAM TECHNOLOGY LLC
million
c $1-2 114 MACON LLC https://www.propertyshark.com/mason/Property/175187/114-Macon-St-Brook
million
Exhibit 4 - Page 6
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 8 of 9 PageID #: 607
c $1-2 RANGEVIEW AG LABOR LLC https://www.manta.com/c/mkhw838/rangeview-agriculture-lab
million
c $1-2 GLOBAL PLATFORM SERVICES, LLC https://www.globalplatformservices.com/About
million
c $1-2 CUSTOM CONTROL SOLUTIONS ENGINEERING INC
million
c $1-2 DAVID HORVATH LAW PA
million
c $1-2 DAVID HORVATH, PA
million
c $1-2 DAVID HORVATH PA
million
Michelle Price
Deputy finance editor
Reuters, Washington D.C.
Desk: +1 202 789 8542
Cell/WhatsApp: + 1 202 604 1711
http://www.reuters.com/
Read my latest stories
Follow me on Twitter
Exhibit 4 - Page 7
Case 4:21-cv-00110-SDJ Document 68-4 Filed 03/11/25 Page 9 of 9 PageID #: 608
This e-mail is for the sole use of the intended recipient and contains information that may be
privileged and/or confidential. If you are not an intended recipient, please notify the sender by
return e-mail and delete this e-mail and any attachments. Certain required legal entity disclosures
can be accessed on our website: https://www.thomsonreuters.com/en/resources/disclosures.html
--
Kabbage, Inc.
Paul Bernardini 201 California
Head of Communications Suite 325
www.kabbage.com San Francisco, CA 94111
Notice of Confidentiality: The information transmitted is intended only for the person or entity to which it is addressed and may contain
confidential and/or privileged material. Any review, re-transmission, dissemination or other use of, or taking of any action in reliance
upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact
the sender immediately by return electronic transmission and then immediately delete this transmission, including all attachments,
without copying, distributing or disclosing same.
Kabbage Platform/Partnerships: Your privacy is important to us. To learn more about how we collect, use, and protect your personal
data, please view our Privacy Notice at https://www.kabbageplatform.com/privacy/
Exhibit 4 - Page 8
File and source
- File
- gov.uscourts.txed.204031.68.4.pdf
- Size
- 843,429 bytes
- SHA-256
- fd2f867718eb31de8366a40c467be3dae98128b6eb00a5f5434cb6fdb5cd6a05
- Original
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