CoreLife Eatery to pay $7.8 million for falsely claiming relief funds
ALBANY, N.Y. (WIVT/WBGH) – A local healthy restaurant chain is on the hook for over $7.8 million in restitution after admitting to falsely certifying its eligibility for a restaurant relief fund during the pandemic in 2021, the Department of Justice announced Monday.
CoreLife Eatery, LLC, which has locations throughout New York, Pennsylvania and other states, including a Vestal location, will pay $7,809,373 for violating the False Claims Act. In 2021, Congress enacted the Restaurant Revitalization Fund (RRF) to support small businesses during the COVID-19 pandemic.
Qualifying restaurants would be eligible for grants to subsidize their pandemic-related losses and stay in business. 'Under the program, any restaurant that—together with its affiliated businesses—owned or operated more than 20 locations as of March 13, 2020, was ineligible for RRF funding,' the release said.
CoreLife, as part of the settlement for $7.8 million, admitted to owning and operating 29 locations as of the March 13, 2020, deadline.
'The Restaurant Revitalization Fund was created to support certain small businesses facing the economic hardships of the COVID-19 pandemic,' said United States Attorney John A. Sarcone III.
'By submitting false information about its size to obtain a grant, CoreLife not only diverted funds from eligible recipients but also eroded public trust in critical relief efforts. Our office remains committed to enforcing the False Claims Act and holding accountable those who misrepresent their eligibility for federal funding,' Sarcone III added.
The relator in the settlement will receive nearly $1.2 million.
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