The now-former controller for the restaurant and nightclub operators Big Night Entertainment Group has been arrested for allegedly stealing $2.5 million from the company. The Hartford Courant reports that Lynn A. Scheufle and her husband were arrested yesterday for embezzling that sum over the past two years. Big Night Entertainment Group runs Gem, The Estate, Red Lantern, and the newly opened Empire in the Seaport District plus three more venues at Foxwoods. The official charge: "fraud and structuring financial transactions in a fashion that circumvents federal cash reporting requirements." Apparently Scheufle was taking cash from ATMs the company maintained at Foxwoods and used company ATM cards for her own withdrawals. Much of the funds were then used for gambling at the casino.
The Courant says the couple "reported on their federal income tax returns that they broke even, winning as much as they lost." How much did they claim to win and then lose? $1.4 million. A publicist for the company says "We are deeply disappointed by this incident, and are working hand in hand with both the Internal Revenue Service and United States Attorney's Office as they uncover all the facts surrounding this elaborate scheme."
· Couple accused in $2.5 million nightclub swindle [Hartford Courant]