A federal lawsuit accusing a luxury dealership in Ohio of fraudulently using Paycheck Protection Program funds has been dismissed, according to a court document filed Tuesday.
Former sales representative Jeffrey Mattox in September sued Jaguar-Land Rover Cincinnati in the Southern District of Ohio, alleging he was fired Aug. 20 after raising concerns that money provided to the store through the federal loan program was being deducted from his commissions.
The two parties have agreed to a “joint stipulation of dismissal with prejudice,” meaning the case cannot be brought back to court. The case was terminated Wednesday.
James Papakirk, Mattox’s lawyer, was not immediately available for comment Friday. Messages seeking comment also were left for executives at the dealership and its attorneys in the lawsuit.
The dealership, which also uses the name Neyra Motor Cars, was approved last April for a PPP loan of between $350,000 and $1 million to retain 54 employees, according to the Small Business Administration.
In the lawsuit, Mattox claimed that around the time the dealership was approved for the loan, the store “changed the amount and method by which it compensated its sales representatives as well as the way it documented their compensation. In addition to receiving typical pay stubs, Mattox (and others) began receiving ‘settle up’ statements that reflected ‘Payroll Protection’ funds being deducted from their commissions as part of the compensation calculation.”
The lawsuit said, “it appears that, while Payroll Protection funds were paid out in certain months, they were essentially recouped from employees in subsequent months through unauthorized withdrawals from their compensation.”
Mattox, who had been with the dealership since 2015, was suing for more than $75,000, plus two times back pay, interest, special damages, costs and lawyer fees.
The lawsuit also claimed Edward Neyra, president of the dealership, gave Mattox “several pretextual reasons” for his termination, including being written up June 24, which Mattox rebutted.
Neyra told Cincinnati’s WCPO ABC 9 in September that Mattox’s firing “had nothing to do with PPP” and said it properly handled the loan.