TOPICS:
CoreLife EateryPandemic reliefFalse Claims ActRestaurant Revitalization FundAmerican Rescue Plan ActEligibilitySettlement agreementLocationsThe United States Department of Justice announced on Monday that CoreLife Eatery has to pay over $7.8 million for in a pandemic relief fund case.
CoreLife Eatery has agreed to pay to settle for violating the False Claims Act. The company has locations in Pennsylvania, Ohio, Illinois, Kentucky and in Central New York. Corelife was accused of falsely certifying its eligibility for aRestaurant Revitalization Fund grant.
The American Rescue Plan Act, enacted in March 2021, allocated $28.6 billion to the RRF to support restaurants and other entities affected by the pandemic. Under the program, businesses with more than 20 locations as of March 13, 2020, were ineligible for funding.
CoreLife admitted that it and its affiliates owned and operated 29 locations as of the eligibility date, making it ineligible for the grant. In May 2021, CoreLife’s managing member submitted an RRF application falsely stating that the company did not own or operate more than 20 locations.
A warning was sent to applicants with more than 20 locations that they would not qualify for the grant. The company's representative falsely responded "no" to the question regarding the number of locations.
Under the settlement agreement, private individuals to file suit for false claims will receive more than $1.1 million.
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