A former Medford restaurant was sentenced in federal court last Friday for stealing more than $759,000 in federal funds intended to help small businesses during the COVID-19 pandemic.

Amigos Mexican Cuisine & Cantina, permanently closed but once located in the Larson Creek Center on North Phoenix Road, will pay a criminal fine of $200,000 and $759,100 in restitution to the U.S. Small Business Administration, according to a news release from the U.S. Attorney’s Office.

In a separate civil proceeding, Amigos was ordered in federal court in Medford to pay $1.6 million to settle a related False Claims Act allegation, the release said.

El Molcajete Mexican Grill operates independently at the Larson Creek Center site now.

In a 13-month period beginning in April 2020, Amigos submitted five fraudulent loan applications to steal more than $759,000 from three COVID-19 pandemic relief programs, according to court documents. The fraudulent applications were submitted to the Paycheck Protection Program, Economic Injury Disaster Loan program and the Restaurant Revitalization Fund, the release said.

“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 said. “The company further falsely claimed on a loan forgiveness application that it had used the funds received for payroll.

“In reality, each time the company received a disbursement of federal funds, its owners would transfer the money to their personal bank accounts for use on various personal expenses.”

Amigos pleaded guilty on April 29 to a one-count criminal information charging the company with stealing public money, according to the release.

This case was investigated by the SBA Office of Inspector General and U.S. Postal Inspection Service. It 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 Amigos’ False Claims Act proceeding, the release said.