Frisch's sues to recover $3.3 million it says was embezzled by former executive
Frisch's Restaurants says a former executive stole millions from the company over several years and is taking him to court to recover it.
In a press release, Frisch's said Michael Hudson, the company's former assistant treasurer, embezzled an estimated $3.3 million from the company by forging payroll documents, creating false documents and accounting entries to divert the money into his personal bank accounts.
Frisch's said in its press release that Hudson resigned and assumed full responsibility. The civil suit has been filed in Hamilton County Common Pleas Court.
Frisch's chief executive officer Craig Maier said the company is taking the precaution of implementing an additional layer of checks and balances in its accounting system to guard against such fraudulent behavior in the future.
“While we were saddened to learn of these unlawful and fraudulent acts carried out against the company by a trusted and long-time employee, we took swift action as soon as we discovered the fraud,’’ Maier said in the press release.
Officials of the 67-year-old company say they don't expect the embezzlement to impact its previously reported earnings.
The Cincinnati-based company operates ninety-five company-owned restaurants and has another 26 that are operated by license holders. The restaurants are in Ohio, Kentucky and Indiana.