The operator of the Frisch’s Big Boy chain has alleged in a lawsuit filing that a former executive had embezzled $3.3 million from the Cincinnati-based company over a three-year period.
Frisch’s Restaurants said it has also notified law-enforcement authorities and is continuing to assess its finances.
In a suit filed in the Court of Common Pleas for Hamilton County, Ohio, Frisch’s is seeking to recover the lost funds. It alleges that former assistant treasurer Michael Hudson diverted the money by forging payroll documents and making false accounting entries in the company’s books.
Frisch’s said in announcing the suit that Hudson has admitted his actions. Hudson has yet to publicly comment on the lawsuit, and it could not be independently confirmed that he has acknowledged any wrongdoing.
He worked for Frisch’s for 32 years before being fired for the alleged misconduct.
"As a precautionary measure, the company is implementing an additional layer of checks and balances in our accounting systems to protect against this type of fraudulent behavior in the future," Frisch’s CEO Craig Maier said in a statement announcing the lawsuit.
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