WASHINGTON — A Maryland country club has agreed to pay more than $1 million to resolve federal allegations that it improperly obtained and retained a COVID-19 relief loan it was not eligible to receive.
The United States Attorney’s Office for the District of Columbia announced Monday, April 6, 2026, that Woodholme Country Club Inc., located in Pikesville, will pay $1,042,500 to settle claims it violated the False Claims Act in connection with a Paycheck Protection Program (PPP) loan.
According to federal authorities, Woodholme applied for and received a $695,000 PPP loan in 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, certifying that it was eligible for the program.
At the time, however, certain nonprofit organizations — including those classified under section 501(c)(7) of the Internal Revenue Code, such as social clubs — were not eligible to receive PPP loans.
Prosecutors allege the club falsely certified its eligibility and later applied for and received full loan forgiveness, including interest totaling approximately $699,710.56.
The government contended that the misrepresentation caused the Small Business Administration not only to approve and forgive the loan but also to pay associated lender fees.
The settlement resolves a lawsuit filed under the False Claims Act’s whistleblower provisions by a private individual, identified as Aidan Forsyth. Under those provisions, whistleblowers can receive a portion of recovered funds. Forsyth is expected to receive approximately $104,250 as part of the resolution.
As part of the agreement, Woodholme will pay $1,042,500, including more than $720,000 designated as restitution, with payments scheduled in installments later this year.
Federal officials emphasized that the settlement resolves civil allegations only and does not constitute an admission of liability.
The case was investigated by the U.S. Attorney’s Office for the District of Columbia and the Small Business Administration, with assistance from federal auditors and legal counsel.
Authorities encourage anyone with information about potential fraud involving pandemic relief programs to report it to the Department of Justice’s National Center for Disaster Fraud at 866-720-5721 or online.
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