Latest news with #RestaurantRevitalizationFund
Business Insider
17-07-2025
- Business
- Business Insider
Senate advances measure to prosecute fraudulent COVID payouts for musicians and restaurants
A Senate committee on Wednesday advanced a bill that would give prosecutors more time to bring fraud charges tied to two pandemic-era relief programs — including one that, as Business Insider has reported, awarded millions of dollars to wealthy musicians who used the money on private jets, luxury goods, and parties. Federal investigators believe at least 6% of the $5 trillion allocated for pandemic relief was routed to fraudsters or people and businesses who didn't qualify. Prosecutors have brought charges over a small fraction of that spending, and could run out of time to bring charges in thousands of cases that were referred to them. Currently, prosecutors have five years after many fraud-related crimes occur to bring charges. The bill would give them an extra five years to file criminal charges against anyone who defrauded the $28 billion Restaurant Revitalization Fund or the $14 billion Shuttered Venue Operators Grant. Originally pitched as a lifeline for independent venues and arts groups, the SVOG program ended up awarding billions with limited guardrails, and a Business Insider investigation found that pop stars like Chris Brown, Lil Wayne, and Marshmello used the money for jets, bonuses, and a birthday bash. Sen. Joni Ernst of Iowa, who chairs the Small Business Committee that moved the bill forward, told Business Insider that the government should be "going after the people that truly didn't deserve the money." "What we saw was a lot of celebrities that were gaming the system," she said, "that were able to take those dollars and buy jets and throw fancy parties and do things like that — boost up their wardrobe. That's not what the dollars were for." The celebrities Business Insider reported on didn't previously reply to comment requests, except for Lil Wayne, who responded to a reporter's questions with an explicit sexual overture. The SBA has defended its fraud controls and said in late 2024 that it was still looking into some grants. The agency has recently sent out hundreds of letters to SVOG grantees demanding that they repay their grants, according to people in the entertainment industry, but details on which grantees were targeted were not available. Maggie Clemmons, an agency representative, told BI that the SBA is "continuously fighting to claw back fraudulently-obtained COVID funds, including within the SVOG program" and criticized "inaction" by the Biden administration. The Restaurant Revitalization Fund, which cut checks of up to $10 million, has been scrutinized by auditors. Nearly a quarter of funds were awarded without doing enough to verify that grantees were eligible, the Small Business Administration's inspector general said last year, and the agency found that improper payments were "likely" in 53 out of 122 restaurant awards it analyzed. The bill still needs to pass the Senate and House of Representatives before it becomes law. And even if the statute of limitations to bring charges is extended, whether prosecutors will clear out the backlog of pandemic-fraud cases is an open question. The agency's inspector general has said the SBA should also extend the time period for which grant recipients hold on to their records. "My hope would be that given the priorities of the Department of Justice, that somewhere in that mix, we have those that will go after the fraudsters," Ernst said. "Fraud is fraud, and our taxpayers really need to know that the federal government takes it seriously." The Ernst bill, the SBA Fraud Enforcement Extension Act, advanced without opposition from Democrats. In 2022, lawmakers similarly extended the deadline to bring fraud charges over the Paycheck Protection Program and Economic Injury Disaster Loans from five years to 10. Congress also allocated at least $653 billion to fund extra unemployment benefits during the pandemic. The House of Representatives passed a bill in March to allow more time to prosecute unemployment benefit fraud, but that bill hasn't advanced in the Senate.
Yahoo
05-05-2025
- Business
- Yahoo
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. President Trump suggests new trade deals could come this week Business of the Week: Warehouse Carpet & Flooring Outlets Police week kicks-off with Binghamton flag raising President Trump wants to reopen Alcatraz Operation Babylift 50 years later: Crash survivor keeps history alive Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
02-04-2025
- Business
- Yahoo
Lawmakers take action after report shows Biden-era SBA failed to probe 2 million alleged COVID aid fraudsters
EXCLUSIVE: The respective chairs of the Small Business Committee in both chambers of Congress are unveiling a plan to address the roughly 2 million "likely fraudulent" pandemic aid applications flagged in a recent government report. Sen. Joni Ernst of Iowa and Rep. Roger Williams of Texas, both Republicans, plan to introduce the SBA Fraud Enforcement Extension Act on Wednesday in hopes of corralling the alleged scofflaws who they say broke the law and prevented untold numbers of legitimate U.S. small businesses from receiving crucial aid. The bill extends the statute of limitations to 10 years for fraud surrounding the Shuttered Venue Operators Grant (SVOG) and the Restaurant Revitalization Fund relief programs instituted in 2020. In 2022, Williams, Ernst and other lawmakers sought to do the same to identify potential scofflaw violators of the Paycheck Protection Program. House Small Business Committee Releases Report On Biden-era Electioneering A report from the nonpartisan Government Accountability Office (GAO) found that the Biden-era Small Business Administration (SBA) either signed or guaranteed more than $1 trillion in loans to more than 10 million small businesses. Read On The Fox News App While it had instituted a four-step process to manage fraud, that plan reportedly faltered when the SBA inspector general was unable to fully probe two-thirds of the risk referrals because the agency didn't provide either correct or complete information about those cases. The GAO then made a formal recommendation to the SBA, which, according to the public watchdog's website, remains "open" – and it appeared no action had at least been recorded. The GAO also found that the fraud prevention process had not been fully implemented until "more than half" of aid programs' funding had been approved. Lawmakers Slam Sba 'Stonewalling' Over Michigan Voter Memo As Electioneering Claims Surface "I will not allow criminals to run out the clock and escape justice simply because the Biden administration was asleep at the wheel," Ernst told Fox News Digital on Tuesday. "Thousands of hardworking small businesses were deprived of desperately needed relief because swindlers, gang members, and felons cashing in on COVID drained the programs. Every single con artist who stole from taxpayers will be held accountable." In Ernst's home state, 1,800 restaurants reportedly qualified for SBA aid but never received it, prompting critics to question how much funding was diverted to fraudulent applicants instead of family-run eateries. In Williams' Lone Star State, federal aid allowed tens of thousands of restaurants to stay in business, but others told outlets like Houston PBS that such funding ran out before many could get back on their financial feet. Lawmakers Demand Answers From Top Michigan Official Over Alleged 'Weaponization' Of Taxpayer Funds For Electioneering The Texas Restaurant Association told the station that 12,000 restaurants found themselves in danger of closing by 2022. Hollywood celebrities had also received some of the SVOG funds and spent them on private jets and parties or cash for themselves, Business Insider reported. "The SBA distributes millions of dollars to small businesses in need every year. However, where small business owners found the capital needed to stay afloat during the COVID-19 pandemic, bad actors saw the opportunity to defraud the government," Williams told Fox News Digital. "It is imperative that every fraudster who stole and exploited taxpayer dollars during our nation's utmost hour of need be prosecuted to the full extent of the law." He added that as March marked five years after the first COVID lockdowns, an extension of the SBA and law enforcement's ability to pursue fraudsters must be realized. Fox News Digital reached out to the SBA for comment. When asked about the discrepancies found in the GAO report, an SBA spokesperson told Fox News Digital that Administrator Kelly Loeffler has already taken action to enhance fraud prevention efforts. "The SBA fully supports all efforts to crack down on fraud within its loan programs – in stark contrast to the last administration, which failed to investigate or address more than $200B in estimated pandemic-era fraud," Caitlin O'Dea said. "[SBA] will continue working to hold pandemic-era fraudsters accountable."Original article source: Lawmakers take action after report shows Biden-era SBA failed to probe 2 million alleged COVID aid fraudsters
Fox News
02-04-2025
- Business
- Fox News
Lawmakers take action after report shows Biden-era SBA failed to probe 2 million alleged COVID aid fraudsters
EXCLUSIVE: The respective chairs of the Small Business Committee in both chambers of Congress are unveiling a plan to address the roughly 2 million "likely fraudulent" pandemic aid applications flagged in a recent government report. Sen. Joni Ernst of Iowa and Rep. Roger Williams of Texas, both Republicans, plan to introduce the SBA Fraud Enforcement Extension Act on Wednesday in hopes of corralling the alleged scofflaws who they say broke the law and prevented untold numbers of legitimate U.S. small businesses from receiving crucial aid. The bill extends the statute of limitations to 10 years for fraud surrounding the Shuttered Venue Operators Grant (SVOG) and the Restaurant Revitalization Fund relief programs instituted in 2020. In 2022, Williams, Ernst and other lawmakers sought to do the same to identify potential scofflaw violators of the Paycheck Protection Program. A report from the nonpartisan Government Accountability Office (GAO) found that the Biden-era Small Business Administration (SBA) either signed or guaranteed more than $1 trillion in loans to more than 10 million small businesses. While it had instituted a four-step process to manage fraud, that plan reportedly faltered when the SBA inspector general was unable to fully probe two-thirds of the risk referrals because the agency didn't provide either correct or complete information about those cases. The GAO then made a formal recommendation to the SBA, which, according to the public watchdog's website, remains "open" – and it appeared no action had at least been recorded. The GAO also found that the fraud prevention process had not been fully implemented until "more than half" of aid programs' funding had been approved. "I will not allow criminals to run out the clock and escape justice simply because the Biden administration was asleep at the wheel," Ernst told Fox News Digital on Tuesday. "Thousands of hardworking small businesses were deprived of desperately needed relief because swindlers, gang members, and felons cashing in on COVID drained the programs. Every single con artist who stole from taxpayers will be held accountable." In Ernst's home state, 1,800 restaurants reportedly qualified for SBA aid but never received it, prompting critics to question how much funding was diverted to fraudulent applicants instead of family-run eateries. In Williams' Lone Star State, federal aid allowed tens of thousands of restaurants to stay in business, but others told outlets like Houston PBS that such funding ran out before many could get back on their financial feet. The Texas Restaurant Association told the station that 12,000 restaurants found themselves in danger of closing by 2022. Hollywood celebrities had also received some of the SVOG funds and spent them on private jets and parties or cash for themselves, Business Insider reported. "The SBA distributes millions of dollars to small businesses in need every year. However, where small business owners found the capital needed to stay afloat during the COVID-19 pandemic, bad actors saw the opportunity to defraud the government," Williams told Fox News Digital. "It is imperative that every fraudster who stole and exploited taxpayer dollars during our nation's utmost hour of need be prosecuted to the full extent of the law." He added that as March marked five years after the first COVID lockdowns, an extension of the SBA and law enforcement's ability to pursue fraudsters must be realized. Fox News Digital reached out to the SBA for comment. When asked about the discrepancies found in the GAO report, an SBA spokesperson told Fox News Digital that Administrator Kelly Loeffler has already taken action to enhance fraud prevention efforts. "The SBA fully supports all efforts to crack down on fraud within its loan programs – in stark contrast to the last administration, which failed to investigate or address more than $200B in estimated pandemic-era fraud," Caitlin O'Dea said. "[SBA] will continue working to hold pandemic-era fraudsters accountable."
Yahoo
12-03-2025
- Business
- Yahoo
Crop Bistro owner Marcelo Fadul Neves indicted in $846K theft of COVID relief funding
[In the player above, watch FOX 8 News coverage on the Restaurant Revitalization Fund from 2021.] CLEVELAND (WJW) — The owner of a shuttered Ohio City restaurant spent more than $800,000 in pandemic business relief funds from the federal government on his personal expenses and debts, according to the Cuyahoga County prosecutor. A county grand jury handed up an indictment charging the owner of Crop Bistro & Bar, Marcelo Fadul Neves, 59, of Westlake, with 15 felony counts, including aggravated theft, telecommunications fraud, tampering with records, grand theft and passing bad checks, according to a Wednesday news release. Watch: New video of protesters blocking Hopkins Airport Neves in 2021 applied for relief through the Restaurant Revitalization funding, administered by the U.S. Small Business Administration to help struggling restaurants keep their doors open during the COVID-19 pandemic, and received $846,720 for his business. But Crop Bistro, along Lorain Avenue in Cleveland's Ohio City neighborhood, had already closed, according to prosecutors. In the restaurant's last Facebook post in December 2020, operators said it would be closing for two weeks 'due to unforeseeable circumstances.' Neves instead used the funding for personal expenses, to pay off debts and to buy another restaurant in Olmsted Falls, called Bistro on the Falls, which was also later closed, according to prosecutors. Separate from the federal funding theft, he also allegedly wrote bad checks to multiple people, including employees, totaling more than $140,000. Several of the bounced checks, totaling $105,000, were made out to DeWitt's Jewelry, according to his indictment. Dept. of Education laying off more than 1,300 employees, terminating leases in Cleveland, other cities Neves was arrested Tuesday, March 11, by agents with the U.S. Secret Service Money Laundering Task Force, with help from Westlake police, according to the release. He is set for arraignment on Thursday, March 13, court records show. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
