A southwestern Michigan golf club has agreed to repay $440,000 after settling allegations that it improperly received a loan through a federal program during the COVID-19 pandemic. The announcement was made by U.S. Attorney Mark Totten on Monday.
Background of the Settlement
Gull Lake Country Club, located near Richland in Kalamazoo County, obtained a loan under the Paycheck Protection Program (PPP), which was designed to help businesses during the pandemic. However, according to federal authorities, the club was not eligible for the loan.
The settlement comes after a whistleblower lawsuit was filed against the club. The federal government later joined the case, which also names other golf clubs in Michigan. Details of the lawsuit remain largely under wraps, as most documents are sealed in federal court in Grand Rapids.
Details of the Paycheck Protection Program
The PPP allowed certain businesses to receive forgivable loans to cover payroll and other expenses during the COVID-19 pandemic. However, the lawsuit alleged that Gull Lake Country Club should not have qualified for the loan under the program’s guidelines.
“Today’s resolution demonstrates our continued commitment to protect taxpayer dollars and investigate allegations of fraud on critical government programs,” said U.S. Attorney Totten in a statement.
Whistleblower Involvement
The lawsuit was initiated by Wade Riner, a whistleblower who will receive a portion of the settlement. Riner has filed similar lawsuits in other states, targeting businesses that allegedly misused federal funds during the pandemic.
Gull Lake Country Club has not commented on the settlement. A phone message seeking a response from the club was not immediately returned.
