Owners of an historic and private Detroit social club agreed to pay more than $357,000 to settle a federal complaint over alleged COVID-19 relief loan fraud, officials announced Wednesday.

Detroit Management Corporation, Lynn Kassotis, Citi Investment Group Corp., and Emre Uralli, the owners of The Detroit Club, agreed to pay the U.S. government $357,669 to resolve allegations they violated the False Claims Act, Julie Beck, Acting United States Attorney for the Eastern District of Michigan, said in a statement.

"The False Claims Act is an important tool to deter and hold accountable those who defraud the government," she said. "Entities who took advantage of the COVID-19 pandemic to commit fraud against the government will be vigorously investigated by our office."

Beck also said the settlement resolves claims against the defendants brought under a whistleblower's complaint. She said the whistleblower will get $71,533.96 from the settlement. Court documents said the whistleblower was a former employee, Benjamin Decker.

Shereef Akeel, Decker's attorney, praised federal prosecutors for investigating the allegations.

"The False Claims Act is an important tool for whistleblowers to ensure that government funds are being spent properly," Akeel said in a statement Wednesday. "The PPP was a critical life raft for so many small businesses that were severely impacted by the Covid-19 pandemic."

Akeel added: "As an employee, our client courageously blew the whistle regarding the...

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