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Multi-Million Dollar RRF Fund Scandal Rocks New York
Feast American Diners LLC and Dawood ‘David’ Beshay, the corporate owner and managing member of multiple Denny’s restaurants throughout Arizona and New York, are facing severe repercussions for falsely certifying their eligibility for a Restaurant Revitalization Fund (RRF) grant. The duo will pay a hefty sum of $2 million to resolve the allegations, announced United States Attorney Carla B. Freedman.
In May 2021, Beshay applied for an RRF grant on behalf of Feast American Diners, in the amount of $928,554. However, the application falsely stated that Feast American Diners owned or operated less than 20 locations as of March 13, 2020. In reality, the company owned 21 Denny’s locations, each making sales on that day. Beshay acknowledges that he should have known about this discrepancy.
The Restaurant Revitalization Fund was enacted as part of the American Rescue Plan Act in March 2021, allocating $28.6 billion for qualifying restaurants and other eligible entities. Any restaurant that owned or operated more than 20 locations as of March 13, 2020, was not eligible for an RRF grant.
The investigation began in December 2022, when a whistleblower filed a qui tam complaint under seal in the United States District Court for the Northern District of New York. The whistleblower, or ‘relator,’ will receive $200,000 of the settlement.
According to the settlement agreement, Feast American Diners and Beshay admit, acknowledge, and accept responsibility for the following facts: They knowingly submitted false information to receive the RRF grant. This case serves as a stark reminder that those who provide false information for the purpose of receiving and retaining SBA program funds will be held accountable.
Feast American Diners LLC, False Claims Act Whistleblower Case, New York 2021
Defendant: Feast American Diners LLC
Criminal Charges: False Claims Act Whistleblower Case
City and State: Albany, New York
Exact Date: May 2021
Sentence or Outcome: Settlement of $2 million
Dollar Amounts: $2 million (settlement), $928,554 (granted amount), $24,700 (whistleblower reward not specified)
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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