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Monday, May 27, 2024 | Back issues
Courthouse News Service Courthouse News Service

SEC Says Italian Restaurant Chain Juggled Books to Hide Money Grabs

MINNEAPOLIS (CN) - The CEO of Buca Inc. took $850,000 in improper compensation and used some of it to buy himself a villa in Italy, and the CFO got $111,000 improperly, some of which he spent on strip clubs and other fripperies, the SEC claims in Federal Court.

It claims Buca juggled the books to the tune of $12 million to meet earnings targets, juggled the books some more to hide the shenanigans, inflated its income by 19 to 37 percent, withheld financial documents from the SEC and drastically under-reported the executives' salaries. The SEC says former CEO Joseph Micatrotto Sr. and former CFO Greg Gadel reimbursed Buca, but it wants an injunction ordering the company not to do that again. Buca is the holding company for the Italian restaurant chain Buca di Beppo, whose shares trade on the NASDAQ. See complaint.

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