CoreLife Eatery ordered to pay over $7M in pandemic funds lawsuit

ALBANY, N.Y. (NEWS10) -- CoreLife Eatery, LLC has been ordered to pay over $7.8 million after the company misrepresented its eligibility for pandemic relief funds, the United States Department of Justice Northern District of New York said on Monday. The health-conscious restaurant chain has locations in Latham, Colonie and Clifton Park.

According to the DOJ, CoreLife submitted an application for the Restaurant Revitalization Fund (RRF) in May 2021. The $28.6 billion grant was first established by the American Rescue Plan Act -- which was enacted by Congress in March that same year -- to support small businesses that were struggling during the COVID-19 pandemic. Restaurants were eligible if they owned and operated 20 or fewer locations as of March 13, 2020.

According to these guidelines, CoreLife was ineligible for RRF funding, as the restaurant and its affiliates owned and operated 29 restaurants as of the qualifying date, according to the DOJ. However, while completing the RRF application process, CoreLife's representative allegedly falsely stated "no" when asked if the company exceeded the 20-location limit and also reportedly initialed next to the statement, "The Applicant, together with its affiliates, does not own or operate more than 20 locations."

A lawsuit was filed against CoreLife in the U.S. District Court for the Northern District Of New York, alleging that the restaurant violated the False Claims Acts by knowingly misrepresenting its eligibility for the RRF grant, DOJ said. Under the settlement, CoreLife has reportedly been ordered to pay $7,809,373.

"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."

CoreLife Eatery, LLC has other locations throughout New York State, as well as in Pennsylvania, Ohio, Illinois and Kentucky.