The University Club of Milwaukee has entered into a settlement to pay over $1 million after claims it wrongly received a Paycheck Protection Program loan during the economic strain of the COVID-19 pandemic. The announcement came from the office of Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin. According to the U.S. Department of Justice, the private club is handing over $1,003,993.86 to settle the allegations.
The Paycheck Protection Program was rolled out back in March 2020, with the intention of providing a lifeline for small businesses battered by the pandemic, covering expenses like payroll and rent. However, not all businesses were eligible for these funds. Congress, wielding the authority of legislative deliberation, had deemed private clubs that limit membership for reasons beyond mere capacity as unfit for the federal spoon-feeding of financial aid. It's within this framework that the University Club of Milwaukee found itself ensnared. According to the government's assertion, the club was ineligible due to restrictions on its membership.
United States Attorney Haanstad remarked on the significance of the PPP as a "limited resource" and emphasized the rationale behind Congress's choice to exclude clubs like the University Club of Milwaukee from accessing these funds. "This settlement represents the continued efforts of the Small Business Administration and the Department of Justice to enforce Congress’s legislative determination and protect the public fisc," Haanstad stated on the U.S. Attorney's Office, underscoring the government's commitment to uphold fiscal policy integrity.
Assistant United States Attorney Aaron R. Wegrzyn presided over the matter on behalf of the government, in partnership with Kandace Zelaya of the SBA’s Office of Litigation and Office of General Counsel – working hand in hand to pursue justice in a field riddled by economic opportunists. While the University Club of Milwaukee has agreed to the payout, it's with hands not tinted with admissions of guilt; no court has found them liable officially, leaving the legal narrative partly untold. In coordination with Zelaya, Wegrzyn pursued the case with an eye for leveling the scales of justice tainted by alleged economic opportunism.
