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CoreLife Eatery, a health food chain that began in Clay, has agreed to pay $7.8 million as part of a settlement for making false statements to obtain COVID-19 pandemic relief funds. The U.S. Attorney's Office for the Northern District of New York announced the settlement on Monday (May 5).
The company, which operates 36 restaurants across several states, falsely claimed eligibility for the Restaurant Revitalization Fund (RRF) grant by stating it had fewer than 20 locations as of March 2020. In reality, CoreLife operated 29 locations at that time, making it ineligible for the grant, which was part of the American Rescue Plan Act aimed at helping small businesses affected by the pandemic.
The discrepancy was brought to light by whistleblower Zachary Howitt, who reported the false claims under the False Claims Act. As part of the settlement, Howitt will receive approximately $1.17 million. CoreLife's managing member submitted the RRF application in May 2021, falsely certifying the company's eligibility, which led to the misappropriation of taxpayer funds.
U.S. Attorney John A. Sarcone III emphasized the importance of maintaining public trust in relief efforts, stating, "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."
The settlement requires CoreLife to repay double the amount it received—$3.9 million as restitution and an equal amount as a fine. The case highlights the ongoing efforts of the U.S. government to enforce the False Claims Act and hold accountable those who misuse federal funds.