⏱ 3 min read
The Buffalo Club, a private membership club in upstate New York, swiped a $1.5 million Paycheck Protection Program (PPP) loan meant for small businesses struggling to survive the COVID-19 pandemic. In March 2021, the club applied for the loan and claimed it was eligible, despite SBA guidance that private clubs like it weren’t.
The SBA had been clear for decades: private clubs that limit membership or restrict patronage aren’t eligible for SBA loans, including PPP loans. But The Buffalo Club didn’t get the memo. It received the loan, then got the entire amount forgiven.
Under the False Claims Act, whistleblowers can bring suit on behalf of the government and get a cut of the settlement. In this case, the club agreed to pay $1.5 million to resolve the allegations.
The settlement resolves claims brought under the qui tam provisions of the False Claims Act. But there’s been no determination or admission of liability.
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📋 Key Facts
- Crime: White Collar Crime
- Defendant: New York
- Location: NY
- Source: DOJ Press Release
