A restaurant analyst has been arrested and charged with extortion after allegedly demanding that CKE Restaurants pay him $25,000 a month not to write damaging reports.
Federal investigators charged Clive Munro, a hospitality analyst with Javelin Research, with extortion, wire fraud, and securities fraud, CKE said yesterday.
The complaint charges that Munro alternately demanded that CKE pay him money to keep quiet, while also trying to coerce the chain into retaining him as a consultant. He allegedly claimed last week that he was a consultant to CKE, "which was untrue," the company said.
Munro recently issued several negative reports on CKE, according to the company.
After he made the alleged extortion demands, CKE tipped off the FBI, who arrested Munro.
"We appreciate the cooperation from CKE Restaurants, the victim in this case," said U.S. Attorney James Martin.
CKE is the parent of Carl's Jr., Hardee's, and La Salsa.