Investors Sue to Remove Jose Garces From His Restaurants

"One of the chef’s earliest and flagship restaurants (part of his 2005 breakout in Philadelphia) is at the center of a lawsuit brought by longtime investors and a local food distributor who accuse him of squandering millions and breaching investor agreements. Plaintiffs allege routine, unauthorized cash sweeps beginning around 2011, a roughly $9 million borrowing that was partly withdrawn within months, a maxed-out $500,000 credit card, and the recharacterization of owed payments as interest-free intra-company loans that were never repaid — all while profits and assets were supposed to be insulated for investors. The investors say they voted in January to remove him from leadership at this restaurant but that he ignored the vote; the chef disputes the claims, calls them false, and argues that business setbacks (including the 2014 closure of an Atlantic City casino that wiped out several profitable venues and the loss of a New York spinoff) explain the financial strain." - Clint Rainey