DETROIT – The owners and operators of The Detroit Club have agreed to pay $357,669 to the United States to resolve allegations that they violated the False Claims Act.

The settling parties are Detroit Management Corporation, Lynn Kassotis, Citi Investment Group Corporation, and Emre Uralli collectively.

Congress created the Paycheck Protection Program (PPP) in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act to provide emergency financial assistance to American businesses suffering from the economic efforts of the COVID-19 pandemic.

The United States Small Business Administration (SBA) administered PPP loans issued by private lenders, with the SBA guaranteeing the loans.

Under the PPP, eligible small businesses could receive forgivable loans to cover expenses like payroll and lease payments.

To obtain a PPP loan, an organization submits an application that requires the applicant to certify, among other things, that it is eligible for the loan and will use the proceeds for eligible purposes.

During the pandemic, the defendants applied for two PPP loans related to the operation of The Detroit Club, a hotel, social club, and restaurant in Downtown Detroit.

Under the program rules, PPP loans were forgivable if the proceeds were spent on eligible expenses up to 24 weeks after the loan was issued.

The first draw loan, for $348,400, was applied for on April 4, 2020. The second draw loan, for $410,546, was applied for on Feb. 16, 2021.

Defendants...

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