A pandemic-era relief funding scandal has just reached a judicial conclusion. The restaurant at the heart of it, Amigos Mexican Cuisine & Cantina LLC, was meted out a combination of criminal fines and restitution payments after conceding its guilt in federal court. According to the U.S. Attorney's Office for the District of Oregon, the now-defunct establishment located just outside of Medford was ordered to pay over $950,000 in restitution and fines for deceptively acquiring COVID-19 aid.
During 13 months starting in April 2020, Amigos executed a scheme to fraudulently secure funds from not one, but three relief programs designed to quickly aid those battling the financial ravages of the pandemic. They managed to steal north of $759,000 by submitting false information across multiple loan applications, as per details shared by the U.S. Attorney's Office. The fabrications covered a range of deceit from inflating company financials to boldly claiming that their business activities were lawful.
The justice system caught up with the fraudulent activities and, on April 29, 2024, Amigos pleaded guilty to a charge of stealing public money. Investigation efforts by the SBA's Office of Inspector General and the U.S. Postal Inspection Service helped to unravel the web of lies woven by the restaurant and its owners.
In addition to the $200,000 criminal fine and $759,100 in restitution to the SBA, Amigos was crushed, further still, by a civil judgment. The restaurant agreed to settle a related False Claims Act allegation to the tune of $1.6 million—a hefty sum for any small business. The scheme included outright lies on a loan forgiveness application, as Amigos claimed that funds were used for payroll when in reality, the money was transferred to the personal accounts of the owners for their use - again, according to the U.S. Attorney's Office.
Assistant U.S. Attorneys Meredith Bateman and Alexis Lien worked the case, exemplifying the close attention that federal programs demand to prevent and punish fraudulent claims. The sentenced restaurant serves as a stern warning to others who may contemplate ever misuse of government-facilitated lifelines intended for genuine crisis management.
