ROCHESTER, N.Y. – U.S. Attorney Michael DiGiacomo announced today that the Genesee Valley Club has agreed to pay $1,050,000 to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA), which it was not eligible to receive. This action is part of the Trump Administration’s Task Force to Eliminate Fraud.The PPP loan program, enacted in March 2020, provided emergency financial assistance to small businesses during the COVID-19 pandemic.
The program allowed eligible small businesses to receive loans guaranteed by the federal government. Private clubs that limited memberships for any reason other than capacity, or restrict patronage for any reason other than capacity, were not eligible for PPP loans.In May 2021, Genesee Valley Club applied for a PPP loan and certified that it was eligible to receive the loan. After receiving the PPP loan, Genesee Valley Club sought and received forgiveness of the entire loan amount. The United States contends that Genesee Valley Club falsely represented its eligibility to receive the PPP loan because it operated as a private club that restricted membership for reasons other than capacity.
“The Paycheck Protection Program was designed to support small business during the COVID-19 Pandemic,” said U.S. Attorney DiGiacomo. “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.”On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people.
The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.This matter was handled by Assistant U.S. Attorney Jonathan W. Ferris and Investigator Margaret McFarland.The claims resolved by the settlement are allegations only; there has been no determination or admission of liability.
GVC settlement