Michigan golf club repays COVID-19 pandemic loan after after lawsuit challenges eligibility

Authorities said Monday that a golf club in southwestern Michigan has agreed to pay $440,000 to settle allegations that it wrongly obtained a loan through a federal program during the COVID-19 pandemic.

Gull Lake Country Club, near Richland in Kalamazoo County, was not eligible for a loan, U.S. Attorney Mark Totten said.

A whistleblower filed a lawsuit against the club, and the federal government joined the case. The lawsuit names other Michigan golf clubs. Most documents in the case are sealed in federal court in Grand Rapids.

Under the Paycheck Protection Program, certain businesses could receive forgivable loans to help them during the pandemic.

A phone message seeking comment from the Gull Lake club wasn't immediately returned.

"Today's resolution demonstrates our continued commitment to protect taxpayer dollars and investigate allegations of fraud on critical government programs," Totten said.

The lawsuit was filed by Wade Riner, who will get a share of the settlement. He has filed similar lawsuits in other states.