The Genesee Valley Club, a prominent Rochester social club, will pay more than $1 million to settle claims that it improperly received a forgivable federal COVID-19 relief loan.
The settlement announced by the U.S. Attorney’s Office for Western New York centers on a $705,000 PPP loan the club received in 2021. Federal officials argued that private social clubs such as the Genesee Valley Club were ineligible for the program.
The Genesee Valley Club agreed to pay $1.05 million to resolve those allegations, including false claim allegations. The club, founded in Rochester in the 19th century, is among the area’s best-known private membership organizations.
Club President Tom Hildebrandt issued a statement when contacted by the Democrat and Chronicle July 10.
“The Genesee Valley Club confirms that it will repay its Paycheck Protection Program (PPP) loan, which was approved and forgiven by the government in error in 2021, as part of a settlement agreement with the U.S. Department of Justice,” the statement said. “The Club anticipates no impact to its operations or employees. Any additional questions should be addressed to the DOJ.”
Also a federal complaint accuses Kitty Van Bortel of withholding information on PPP paperwork; four dealerships under the Van Bortel Automotive Group received a collective $7.3 million in federal aid between 2020 and 2021.
Feds pursuing claims of PPP loan fraud
At the height of the pandemic, federal officials approved 11.5 million loans totaling nearly $800 billion. The loans were low-interest or forgivable, and funds were meant to help small businesses survive shutdowns and the economic downturn experienced during the pandemic. A federal task force is now reviewing suspected fraud cases tied to the program.
“The Paycheck Protection Program was designed to support small business during the COVID-19 Pandemic,” U.S. Attorney Michael 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.”
This article originally appeared on Rochester Democrat and Chronicle: Genesee Valley Club to pay $1.05M in PPP loan settlement
Reporting by Kayla Canne, Rochester Democrat and Chronicle / Rochester Democrat and Chronicle
USA TODAY Network via Reuters Connect
By Kayla Canne, Rochester Democrat and Chronicle | USA TODAY Network
