Home Banking SVB discloses potential fraud tied to $70M loan

SVB discloses potential fraud tied to $70M loan


SVB Financial Group in Santa Clara, Calif., is investigating a potential case of fraud tied to a large line of credit.

The $116 billion-asset company disclosed in a regulatory filing Friday that it recently became aware of a potential issue with a $70 million lending relationship. The issue is connected to a loan transaction funded in early February as part of its global fund banking portfolio.

SVB “is working with the appropriate law enforcement authorities in connection with this matter and intends to pursue all available sources of recovery and other measures to mitigate the potential loss,” the filing said.

SVB said that after a risk assessment review of its global fund banking portfolio it believes the incident is an isolated occurrence involving a single business relationship.

Separately, SVB said it expects to record $230 million to $300 million in net gains on investment securities and equity warrant assets for the first quarter. The gains would include the sale of shares of BigCommerce Holdings.

SVB, which recently announced it was buying Boston Private Financial Holdings, is scheduled to report first-quarter results on April 22.