Geneseo Denny’s permanently closed due to fraud
According to a recent press release from the United States Attorney’s Office in the Northern District of New York, Dawood ‘David’ Beshay, owner of restaurant franchising business Feast American Diners LLC, will pay two-million dollars to resolve his illegal seeking of government financial aid by implementing false information on relief applications.
Like many other service industries, the restaurant business was hit hard by the effects of the COVID-19 pandemic. Geneseo Denny’s was no exception, closing indefinitely in May 2020 alongside four others in the greater Rochester area owned by Beshay, affecting over 150 employees. The restaurant eventually reopened in October 2020, but continued to struggle severely, with several other Feast American Diners locations closing permanently.
Beshay wasn’t planning to surrender his restaurants just yet, however; in March 2021, Congress passed the American Rescue Plan Act, establishing the Restaurant Revitalization Fund (RRF) to assist the many struggling dining establishments across the country. In May of that year, Beshay sought $928,554 of government funds for Feast American Diners via an RRF grant. One of the potential factors of eligibility for RRF relief was the number of restaurants owned by an applicant, with businesses operating over 20 locations as of March 2020 being ineligible for aid.
As of March 2020, Beshay owned and operated exactly 21 Denny’s locations. Despite this fact, he affixed his initials to an application that falsely claimed Feast American Diners LLC owned 20 locations or less. Beshay walked away with the money until an anonymous employee filed a whistleblower complaint with the Department of Justice’s National Center for Disaster Fraud Hotline in December 2022. In reward for their whistleblowing, the relator will receive a hefty $200,000 share of the $2 million settlement.
Denny’s staff are now unemployed due to Beshay’s malfeasance, placing further difficulty on food service workers after a harsh few years and previous instability due to the location’s prior temporary closure. As the building has officially closed, the only thing left is its unlit yellow sign—all that remains is the numerous memories contained within this building’s walls.
A handwritten sign, taped to the inside of the restaurant on Geneseo’s Lakeville Road, is all that remains of the bustling local Denny’s, now closed permanently due to managerial malfeasance. “Thank you for all your support and business through the years,” the sign reads.
Thumbnail Photo courtesy of Lamron Photo Editor FP Zatlukal