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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." --->READ MORE HERE
An Athens, Georgia tax preparer has been sentenced to eight years behind bars following her confession to filing fraudulent tax returns that were part of a wider COVID-19 pandemic unemployment benefit scheme, as reported by the U.S. Attorney’s Office for the Middle District of Georgia. Jessica Crawford, 34, pleaded guilty to wire fraud and aiding in the preparation of false tax returns, and in addition to her prison sentence, will face five years of supervised release after her incarceration, according to a statement from the Department of Justice.
The court documents reveal that Crawford, who operated Crawford Tax Services in Athens, was involved in a scheme that filed Pandemic Unemployment Assistance (PUA) benefits for individuals who had falsified business activities or given false information to unlawfully obtain benefits while in her role as a tax preparer she earned a cut from these fraudulent earnings, the DOJ detailed. A statistical review by the Internal Revenue Service of over 1,200 tax returns filed by Crawford found that the loss to the IRS exceeded $3 million, with false claims stretching across sick leave and family leave credits, dependent care credits, and others.
"Federal law enforcement uncovered a large-scale tax return scheme during the pandemic that was costing taxpayers while benefiting fraudsters," Acting U.S. Attorney C. Shanelle Booker stated. Jessica Crawford misused the CARES Act relief program, designed to support those out of work due to the pandemic, and further defrauded the government by filing false tax returns on behalf of her clients, added Lisa Fontanette, Atlanta Field Office Assistant Special Agent in Charge. Special Agent in Charge of FBI Atlanta, Paul Brown, also emphasized the dedication of law enforcement to root out and prosecute those exploiting taxpayer funds. --->READ MORE HEREFollow links below to relevant/related stories and resources:
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