Southern Oregon restaurant fined for theft of coronavirus relief funds
(The Center Square) – A closed restaurant in southern Oregon received a federal court sentence last week for stealing over $759,000 in coronavirus pandemic small business relief funding.
Amigos Mexican Cuisine & Cantina LLC, formerly located outside of Medford, Oregon, must pay a $200,000 criminal fine plus $759,100 in restitution to the U.S. Small Business Administration, according to the U.S. Attorney for the District of Oregon.
Additionally, the business must pay $1.6 million to settle a related False Claims Act allegation.
The U.S. Attorney for the District of Oregon never named anyone associated with the restaurant who committed the crime, nor did it disclose if anyone faced any prison time.
From April 2020 to May 2021, Amigos submitted five fraudulent loan applications. In doing so, it stole over $759,000 from three coronavirus relief programs: the Paycheck Protection Program, the Economic Injury Disaster Loan Program, and the Restaurant Revitalization Fund.
“Amigos made numerous false statements on these applications, including claiming its owners did not own other businesses, providing inaccurate company financials, and falsely attesting that the company was not engaged in any illegal activity,” the release explained.
Furthermore, the company falsely stated on a loan forgiveness application that it used its received funds for payroll. However, the company used the federal funds illicitly. The business owners transferred the money to their personal bank accounts to spend however they wished.
Amigos pleaded guilty to a one-count criminal information on April 29, 2024, charging the business with stealing taxpayer money.
