Ozaukee Country Club has paid $750,000 to settle claims that it improperly obtained a loan through the Paycheck Protection Program, according to an announcement by First Assistant United States Attorney Brad D. Schimel for the Eastern District of Wisconsin on July 22.
The settlement addresses allegations that Ozaukee Country Club, which operates as a private club in Mequon, Wisconsin, was ineligible for the federal loan program because it limits membership for reasons other than capacity. The government said the club requires nominees to be sponsored by current members and approved by its board of directors. According to the government, these practices made Ozaukee Country Club ineligible under regulations governing Small Business Administration loans.
The Paycheck Protection Program was enacted in March 2020 to provide emergency financial assistance during the COVID-19 pandemic. Congress directed that PPP loans follow existing Small Business Administration terms and eligibility requirements. For decades, SBA regulations have stated that private clubs limiting membership for reasons other than capacity are not eligible for such loans.
“Although our criminal division receives most of the high-profile attention, the U.S. Attorney’s Office also has an outstanding civil division,” said First Assistant U.S. Attorney Brad Schimel. “I am very proud of the excellent work our civil division did on this case and countless others to protect the interests of the United States and its citizens.”
SBA General Counsel Wendell Davis said, “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.” The settlement resolves allegations against Ozaukee Country Club regarding its PPP loan; however, no liability has been admitted nor determined by a court.
On April 7, 2026, the Department of Justice announced creation of a National Fraud Enforcement Division focused on investigating and prosecuting fraud against Americans within federal benefit programs—a part of President Trump’s Task Force to Eliminate Fraud chaired by Vice President J.D. Vance.
The U.S. Attorney for Eastern District of Wisconsin serves Eastern Wisconsin as part of the Department of Justice and works alongside law enforcement partners at all levels to enhance community safety while ensuring impartial justice delivery across public service efforts, according to its official website.