US Attorney Joins Schostak PPP Lawsuit
Federal prosecutors are joining a whistleblower lawsuit alleging that Michigan business group Schostak Brothers exceeded pandemic loan limits by nearly $2.5 million. The case claims the companies violated corporate group caps and employee thresholds for second-draw Paycheck Protection Program funds.
The United States Attorney’s Office in Grand Rapids joined a federal whistleblower lawsuit accusing five Michigan restaurant and real estate businesses owned by the Schostak family of overdrawing nearly $2.5M from pandemic-era relief loans. The lawsuit was originally filed in April 2025 under the False Claims Act by whistleblower firm Blockquote Inc., before being unsealed in late August after federal prosecutors intervened. The action targets $6.5M in second-draw Paycheck Protection Program funds disbursed in 2021 to entities including Schostak Brothers & Co. and Team Schostak Family Restaurants.
