Court Dismisses Fraud Lawsuit Against Van Bortel Group
The legal action regarding federal pandemic aid for the Rochester dealership group has been officially concluded.
Updated on Oct. 30, 2026 in Buying/Selling
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A federal court dismissed a lawsuit on October 5, 2026, that had accused Rochester-based Van Bortel Automotive Group of fraud regarding $7.3 million in pandemic-era federal aid. The plaintiff, PPP Eligibility Experts LLC, voluntarily moved to drop the case earlier that week.
Why it matters
This dismissal resolves a legal challenge concerning the reporting of business size for federal loan eligibility, clearing the automotive group of allegations that they withheld information during the application process.
Van Bortel Automotive Group received $7.3 million in federal aid through the Paycheck Protection Program between 2020 and 2021. The case was dismissed following a motion filed on October 2, 2026.
The players
Van Bortel Automotive Group
A Rochester-based automotive dealer group that operates several brands and was the subject of a federal fraud lawsuit.
Mary Catherine Van Bortel
The leadership figure at the dealership group who denied allegations of fraud in July 2026.
PPP Eligibility Experts LLC
The organization that initiated and subsequently dismissed the lawsuit regarding federal aid applications.
The details
The lawsuit alleged that the dealership group failed to properly disclose the collective size of its business enterprise when applying for loans. Mary Catherine Van Bortel, who denied the fraud allegations, oversaw the group during the period the funds were issued. The federal court and the U.S. government consented to the voluntary dismissal of the lawsuit, concluding the legal proceedings.
Timeline
2020-2021: Van Bortel Automotive Group received federal aid loans.
October 2, 2026: The plaintiff moved to voluntarily dismiss the lawsuit.
October 5, 2026: The court and the U.S. government consented to the dismissal.
The Home Front
This case sits within the broader landscape of post-pandemic regulatory audits regarding business loan eligibility and the reporting of enterprise size. It highlights the ongoing legal complexities faced by local organizations navigating large-scale federal relief programs.
Local shoppers and households who frequent these dealerships can note that the legal challenge against the group has been officially concluded. No further action or disruption to standard vehicle services or sales operations is expected as a result of this court outcome.
The takeaway
The dismissal of the lawsuit effectively ends the public legal dispute regarding the group's 2020 and 2021 federal aid applications. Rochester residents should note that the matter is settled with no impact on dealership operations.
Further reading
For more on the local automotive market, see our guide to Buying/Selling.
Source note: This article includes information reported by Democrat and Chronicle.
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