Westmoor Country Club has agreed to pay $1.25 million to settle allegations that it improperly received a loan from the Paycheck Protection Program (PPP), according to an announcement from the United States Attorney’s Office for the Eastern District of Wisconsin.
The PPP was created in March 2020 to provide financial relief to businesses and nonprofits affected by the COVID-19 pandemic. The program allowed eligible organizations to apply for loans guaranteed by the federal government, which could be forgiven if used for approved expenses.
Federal law requires that PPP loans follow the same eligibility rules as other small business loans administered by the Small Business Administration (SBA). These rules have long excluded private clubs and businesses that limit membership for reasons unrelated to capacity.
According to government officials, Westmoor Country Club operates exclusively for its members and had restrictions on membership not based on capacity at the time it applied for and received both a PPP loan and subsequent loan forgiveness. This made it ineligible under SBA regulations.
SBA General Counsel Wendell Davis stated, “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.”
Assistant United States Attorney Aaron R. Wegrzyn represented the government in coordination with Kandace Zelaya from SBA’s Office of Litigation and Office of General Counsel. The settlement resolves these allegations without Westmoor Country Club admitting liability, and no court has determined liability in this matter.
