Two prominent Rochester-area entities are accused of falsely applying for and receiving millions of dollars in small-business loans during the COVID-19 pandemic.
A newly unsealed federal complaint accuses Mary Catherine "Kitty" Van Bortel of withholding information that would have made her car dealerships ineligible for loans under the federal Paycheck Protection Program. Four dealerships under the Van Bortel Automotive Group received a collective $7.3 million in federal aid between 2020 and 2021.
In a text message July 10 to the Democrat and Chronicle, Van Bortel denied any allegations of fraud. The complaint is a "scam" and her attorneys are looking into it, Van Bortel said.
"I'm beside myself," she said. "I would NEVER do anything fraudulent."
The complaint, first reported by the Rochester Business Journal, was made public the same day federal authorities announced a separate settlement with the Genesee Valley Club, which received a $705,000 PPP loan in 2021. The U.S. Attorney's Office argued private social clubs were ineligible for the federal relief loans.
The Genesee Valley Club agreed to pay $1.05 million to resolve those allegations, including false claim allegations.
Club President Tom Hildebrandt issued a statement when contacted by the Democrat and Chronicle July 10.
"The Genesee Valley Club confirms that it will repay its Paycheck Protection Program (PPP) loan, which was approved and forgiven by the government in error in 2021, as part of a...
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