The Genesee Valley Club has agreed to pay $1.05 million to resolve allegations that it improperly received a federal Paycheck Protection Program loan during the COVID-19 pandemic despite being ineligible for the funding.
U.S. Attorney Michael DiGiacomo announced the settlement Friday, saying it is part of the Trump Administration’s Task Force to Eliminate Fraud.
The Paycheck Protection Program, created by Congress in March 2020, provided federally backed loans to help eligible small businesses retain employees during the pandemic. Under program rules, private clubs that restricted membership or patron access for reasons other than capacity were not eligible to receive PPP loans.
According to the U.S. Attorney’s Office, the Genesee Valley Club applied for a PPP loan in May 2021 and certified that it was eligible to participate in the program. The club later received full forgiveness of the loan.
Federal officials contend the club was not eligible because it operated as a private club that restricted membership for reasons other than capacity.
“The Paycheck Protection Program was designed to support small businesses during the COVID-19 Pandemic,” DiGiacomo said in a statement. “As evidenced by the numerous settlements we have obtained involving PPP loans, this office continues to work tirelessly to recover taxpayer dollars that were improperly obtained by ineligible entities.”
The U.S. Attorney’s Office noted that the settlement resolves allegations only. The agreement does not include a determination or admission of liability by the Genesee Valley Club.
The case was handled by Assistant U.S. Attorney Jonathan W. Ferris and Investigator Margaret McFarland.
