"Chef-owner Melissa Araujo was arrested by the Louisiana Bureau of Investigation on Wednesday, May 7 on charges of government benefits fraud; according to multiple news outlets, she is said to have misrepresented her income to collect Medicaid benefits totaling $55,000. According to NOLA.com, Araujo allegedly received deposits worth $384,147.51 in her personal bank account between June 2020 and September 2022, and the warrant obtained by WAFB states Araujo purchased three properties worth $785,000 in total. She also allegedly received 1,266 deposits worth $3.1 million from 13 businesses linked to her. She allegedly told an employee of the Louisiana Department of Health that she had not “engaged in work” since 2022. Araujo released this statement after her arrest: “Following the news that broke yesterday, I want to acknowledge the situation and make it clear that I am fully cooperating with the ongoing investigation. I believe in transparency and I trust that the process will ultimately bring the truth to light and I will be cleared of these charges. My attorney has been, and will remain, in communication with the Louisiana Attorney General’s office. At this time, I ask for patience and privacy as the facts are thoroughly examined.” The cafe is best known for its modern interpretations of classic Honduran and American breakfasts; it started as a pop-up as an ode to Araujo’s Honduran heritage and her grandmother’s kitchen, opened its first location in New Orleans’s Bywater neighborhood in 2020, and in early February 2025 opened a second location at 301 North Carrollton Avenue that added an oyster bar, happy hour, and dinner to its repertoire. Araujo is a two-time James Beard Award semifinalist for Best Chef: South. She is currently free on bond; if convicted she faces up to five years of imprisonment and a fine of up to $10,000." - Erin Perkins