CoreLife Eatery, LLC, a restaurant chain operating in multiple states including New York and Pennsylvania, has agreed to pay $7.8 million to settle allegations of violating the False Claims Act. The company was accused of falsely certifying its eligibility for a Restaurant Revitalization Fund (RRF) grant despite operating too many locations to qualify.
United States Attorney John A. Sarcone III commented on the case, stating that CoreLife's actions diverted funds from eligible recipients and eroded public trust in relief efforts. "The Restaurant Revitalization Fund was created to support certain small businesses facing the economic hardships of the COVID-19 pandemic," he said.
The American Rescue Plan Act, enacted in March 2021, allocated $28.6 billion to the RRF to aid qualifying restaurants affected by pandemic-related revenue losses. Restaurants with more than 20 locations as of March 13, 2020, were not eligible for funding under this program.
CoreLife admitted that it owned and operated 29 locations as of the eligibility date but still applied for an RRF grant in May 2021. The application included a question about location numbers, which CoreLife's representative falsely answered "no" to indicate fewer than 20 locations.
Amaleka McCall-Brathwaite from the SBA Office of Inspector General emphasized accountability for fraudulent claims: “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, the relator will receive over $1.17 million.
The investigation involved collaboration between various offices including the United States Attorney’s Office for the Northern District of New York and SBA officials. Assistant United States Attorneys Adam J. Katz and Christopher R. Moran along with Department of Justice Trial Attorney Samuel Robins represented the United States.
