Casa Ramos has reopened. But did the restaurant’s ex-CEO prompt a state raid?
Casa Ramos is accusing its former top executive of reporting the restaurant chain to the state Department of Justice, which caused most of the 14 Northern California restaurants to close Wednesday before they reopened Thursday.
Restaurant founder Marco Ramos died in June 2015 at the age of 52, leaving the business in the hands of his longtime business partner, Michelle Hill. She and Ramos opened a dozen Casa Ramos restaurants and had a daughter together, according to the Redding Record Searchlight.
Casa Ramos office manager Kathi Rendon said the former CEO told the DOJ that Casa Ramos had been reporting its sales tax figures incorrectly, a claim the restaurant disputes. Rendon said the CEO was terminated in 2016 due to “the discovery of the numerous unethical business practices,” Rendon wrote in an email.
“No one likes to air their personal business, but due to rumors and misinformation that can directly impact the business of Casa Ramos, we have been forced to come forward and address false accusations and fabrications,” Rendon wrote. “Casa Ramos has been accused, by a disgruntled former employee, of not reporting sales tax correctly. That charge is being investigated and will not affect our daily operations.”
The DOJ’s Tax Recovery and Criminal Enforcement Task Force served search warrants at all Casa Ramos locations Wednesday, causing restaurants in north Sacramento, Rancho Cordova, Citrus Heights, Rocklin and El Dorado Hills to close for the day. The chain’s Placerville outpost remained open.
Hill and her family bought Cicada Cantina in Redding in July 2017 and plan to open up to 15 sister restaurants across Northern California in the next five years, according to the Redding Record Searchlight. The family also owns Tres Chiles Picosos in Eureka. Attempts to contact Hill at Tres Chiles Picosos and Cicada Cantina were unsuccessful.
Though Rendon said Casa Ramos has “commenced civil proceedings” against its ex-employee, the only active Siskiyou Superior Court suit against Hill seeks unjust enrichment restitution for three properties in Yreka. Filed by Placer County resident and Ramos’ nephew Raul Lecouna, the suit claims Hill pocketed rent money owed to Lecouna as Ramos’ beneficiary.
This story was originally published September 20, 2018 at 4:13 PM.