Wisconsin golf club to pay $1.2M for 'improperly obtained' PPP loan
Chris Ramirez- A Wisconsin country club will pay $1.25 million to settle claims it improperly received a Paycheck Protection Program loan.
- Westmoor Country Club in Brookfield was ineligible for the $755,471 loan because it limited its membership for reasons other than capacity.
- The settlement resolves the government's allegations, but the club does not admit liability in the matter.
Westmoor Country Club in Brookfield, Wisconsin, will pay $1.25 million to the federal government to settle claims it improperly obtained a loan through the Paycheck Protection Program.
The repayment is nearly double the amount the $755,471 the Brookfield business requested when it applied for help in March 2021, according to data from the U.S. Small Business Administration, which awarded the money.
The agreement was announced in a statement on Monday by the Eastern District of the U.S. Attorney's Office. A spokesman for Westmoor declined comment when reached by the Milwaukee Journal Sentinel.
Although the settlement resolves the government's allegations against Westmoor, the club does not admit liability and no court has made any determination as to liability, the U.S. Attorney's Office statement said.
Enacted in March 2020, the PPP loan program served as a financial lifeline that kept afloat millions of businesses that struggled economically in the wake of the COVID-19 pandemic.
The program allowed eligible small businesses and nonprofits to receive loans guaranteed by the federal government and, if the borrower spent the funds on qualified expenses, the federal government would repay the loan on the borrower's behalf.
The funds were administered by the SBA, which was directed by Congress to guarantee PPP loans “under the same terms, conditions, and processes” as ordinary small business loans.
Located near Moorland and Bluemound roads, Westmoor Country Club describes itself on its website as a private club that serves more than 500 member families, and offers a variety of amenities other than golf, including tennis, swimming and dining facilities.
At the time Westmoor applied for a PPP loan and loan forgiveness, the club limited its membership for reasons other than capacity, making it ineligible to participate in the PPP program, the U.S. Attorney's Office said in its statement.
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other federal law enforcement agencies to recover the product of this fraud as well as penalties,” SBA General Counsel Wendell Davis said in a statement.
Assistant U.S. Attorney Aaron R. Wegrzyn represented the government in the matter, in coordination with Kandace Zelaya in the SBA’s Office of Litigation and Office of General Counsel.
Chris Ramirez covers courts for the Milwaukee Journal Sentinel. He can be reached at caramirez@usatodayco.com.