CoreLife Eatery, LLC has agreed to pay $7.8 million to settle allegations of violating the False Claims Act by misrepresenting its eligibility for a Restaurant Revitalization Fund (RRF) grant. The company operates restaurants in several states, including New York and Pennsylvania.
United States Attorney John A. Sarcone III stated, "The Restaurant Revitalization Fund was created to support certain small businesses facing the economic hardships of the COVID-19 pandemic." He emphasized that CoreLife's actions diverted funds from eligible recipients and eroded public trust in relief efforts.
The American Rescue Plan Act, enacted in March 2021, allocated $28.6 billion to the RRF for qualifying restaurants based on pandemic-related revenue losses. However, entities with more than 20 locations as of March 13, 2020, were not eligible for funding.
CoreLife admitted that it operated 29 locations by this date but still applied for an RRF grant in May 2021. The application required confirmation of owning fewer than 20 locations, which CoreLife falsely affirmed.
Amaleka McCall-Brathwaite from the SBA Office of Inspector General remarked on accountability: "Those who violate the False Claims Act by fraudulently receiving and retaining SBA program funding will be held accountable."
The case originated from a qui tam complaint filed in the United States District Court for the Northern District of New York. Under this settlement agreement, a relator will receive over $1 million as part of the recovery.
This resolution involved collaboration between various federal offices and attorneys Adam J. Katz and Christopher R. Moran from the United States Attorney’s Office.