Court Dismisses PPP Lawsuit Against Van Bortel
A federal court has dismissed a fraud case against the Rochester-based dealership group following a voluntary withdrawal.
Updated on Oct. 30, 2026 in Buying/Selling
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A federal court dismissed a lawsuit alleging that Van Bortel Automotive Group improperly secured $7.3 million in federal aid during the pandemic. The case ended on October 5, 2026, after the plaintiff, PPP Eligibility Experts LLC, filed to voluntarily dismiss the action.
Why it matters
The lawsuit challenged whether the automotive group correctly disclosed the size of its enterprise when applying for relief funds. Mary Catherine Van Bortel denied all allegations of fraud brought forth by the plaintiff during the legal dispute.
Van Bortel Automotive Group received $7.3 million in funding via the Paycheck Protection Program between 2020 and 2021. The legal challenge centered on whether the dealerships accurately reported their collective organizational scale.
The players
Van Bortel Automotive Group
This is a Rochester-based group of dealerships that faced allegations regarding its use of federal pandemic-era funding.
Mary Catherine Van Bortel
She serves as a leader within the dealership group and formally denied the allegations of fraud leveled against the company.
PPP Eligibility Experts LLC
This organization acted as the plaintiff in the lawsuit and initiated the claim before voluntarily dismissing the action.
The details
PPP Eligibility Experts LLC initiated the complaint, claiming that the dealership group withheld critical information during the loan application process. Mary Catherine Van Bortel subsequently denied these allegations, leading to the case being withdrawn by the plaintiff.
Timeline
The Van Bortel Automotive Group received federal aid loans between 2020 and 2021.
Mary Catherine Van Bortel denied the fraud allegations in July 2026.
The plaintiff moved to voluntarily dismiss the lawsuit on October 2, 2026.
The court and the U.S. government consented to the dismissal on October 5, 2026.
Roadmap
This case sits within the wider effort to review the distribution and usage of the Paycheck Protection Program funds across the automotive sector. The dismissal reflects the complexities of auditing large dealer networks that may have operated as a collective enterprise.
The dismissal resolves the legal uncertainty hanging over the dealership group, clarifying that it will not face current court-mandated penalties. Local customers can continue to utilize the group's services without concerns regarding ongoing federal litigation.
The takeaway
Legal disputes regarding pandemic-era government aid often turn on technical definitions of enterprise size and eligibility requirements. Businesses should maintain clear documentation of their organizational structure to prevent future claims of non-disclosure.
Further reading
For broader trends in dealership operations, visit Rochester Buying/Selling.
Source note: This article includes information reported by Democrat and Chronicle.
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