David
Top man and a member of a rare breed. You have morals and a conscience.
So someone in a club, not a business, run for the benefit of its members and no one else, probably on an annual membership basis so that all its costs are covered found a loophole to exploit.
In my humble opinion the person and committee that decided to pursue such a claim are your polar opposites, moral less, self interest scroats. Claiming it was a disgrace, keeping it when people are genuinely suffering is worse.
They will be the first ones moaning when we all have to pay this back, stick to your principles well done.