PORTLAND, Ore. (KTVZ) – A southern Oregon restaurant was convicted in federal court Friday of stealing more than $759,000 in federal funds intended to help small businesses during the Covid-19 pandemic.

Amigos Mexican Cuisine & Cantina LLC, formerly based outside of Medford, was fined $200,000 and ordered to pay $759,100 in restitution to the U.S. Small Business Administration.

In a separate civil case, Amigos was ordered to pay $1.6 million to settle a related charge under the False Claims Act.

According to court documents, Amigos submitted five fraudulent loan applications over a 13-month period beginning in April 2020 to steal more than $759,000 from three Covid-19 pandemic relief programs: the Paycheck Protection Program, the Economic Injury Disaster Loan Program and the Restaurant Revitalization Fund.

According to prosecutors, Amigos made numerous false statements in those applications. For example, the company claimed that its owners did not own other companies, provided false company financial information and falsely asserted that the company was not involved in any illegal activities.

The company also falsely stated in a debt relief application that it used the funds it received for payroll. In fact, each time the company received a disbursement of federal funds, the owners transferred the money to their personal bank accounts to use for various personal expenses.

On April 29, Amigos pleaded guilty to one count of stealing public funds.

The case was investigated by the SBA’s Office of Inspector General and the U.S. Postal Inspection Service and was prosecuted by Meredith Bateman, Assistant U.S. Attorney for the District of Oregon. Assistant U.S. Attorney Alexis Lien represented the United States in the Amigos’ False Claims Act action.