CoreLife Eatery, which operates restaurants in several states, including New York and Pennsylvania, admitted it falsely claimed to be eligible for Restaurant Revitalization Fund (RRF) money—federal grants meant to help small businesses hit hard by the COVID-19 pandemic.
That’s where the whistleblower comes in.
The civil case was brought under the False Claims Act, which allows private citizens to file lawsuits on behalf of the government if they believe someone is cheating federal programs. If the case results in a financial settlement or court win, the whistleblower—known as a relator—is entitled to a portion of the money recovered.
In this case, CoreLife Eatery will pay $7.8 million to settle the case, according to the US Attorney’s Office for the Northern. District of New York. The whistleblower’s payout came to $1,171,405.96
“The Restaurant Revitalization Fund was created to support small businesses,” said US Attorney John Sarcone. “By submitting false information about its size, CoreLife diverted funds from eligible recipients and eroded public trust in relief efforts.”
The fund was part of the American Rescue Plan passed in 2021. It prohibited restaurants with more than 20 locations—including affiliates—from applying. CoreLife had 29.
Still, the company’s managing member submitted a grant application in May 2021, falsely stating the company was under the limit. They even initialed a section confirming the false claim, federal prosecutors said.
CoreLife has now...
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