What's Happening?
Fresco by Scotto, a popular Italian restaurant in Midtown East co-owned by Rosanna Scotto, a Channel 5 'Good Day New York' anchor, was reportedly embezzled of $2.5 million by its bookkeeper, Lori Jakubowski.
According to the Manhattan District Attorney's Office, Jakubowski allegedly executed the embezzlement over a seven-year period, using various methods such as stealing cash tips and writing unauthorized checks from the restaurant's bank account. The funds were reportedly used to finance her personal lifestyle, including purchasing a house in Pennsylvania and paying her husband's internet bills. Jakubowski has been charged with grand larceny and falsifying business records, facing up to 25 years in prison if convicted. She pleaded not guilty and was released under supervision, with a court date set for February 28, 2026.
Why It's Important?
This case highlights significant vulnerabilities in financial oversight within businesses, particularly in the hospitality industry. The alleged embezzlement not only impacts the financial health of Fresco by Scotto but also raises concerns about trust and security in employee management. For Rosanna Scotto and her co-owners, the incident could affect the restaurant's reputation and operational stability. More broadly, it underscores the importance of stringent financial controls and regular audits to prevent similar occurrences in other businesses. The case also serves as a cautionary tale for business owners to ensure robust checks and balances are in place to safeguard against internal fraud.
What's Next?
Lori Jakubowski is scheduled to return to court on February 28, 2026, where further legal proceedings will determine the outcome of the charges against her. The restaurant, meanwhile, is cooperating with the ongoing investigation. Depending on the case's outcome, there could be broader implications for how businesses in the hospitality sector manage their financial operations and employee oversight. The case may prompt other businesses to review and strengthen their internal controls to prevent similar incidents.
