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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of New York

FOR IMMEDIATE RELEASE
Tuesday, July 23, 2019

OWNER OF LA CRÉMAILLÈRE ARRESTED ON MULTIPLE FRAUD CHARGES

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of BARBARA MEYZEN, a/k/a “Bobbie Meyzen,” the owner and operator of La Crémaillère Restaurant in Banksville, New York, on multiple fraud charges.  MEYZEN was arrested earlier today in Connecticut and will be presented this afternoon before United States Magistrate Judge Lisa Margaret Smith.

U.S. Attorney Geoffrey S. Berman said:  “When Barbara Meyzen’s upscale clientele of bankers, celebrities, and other notable figures frequented her restaurant, they saw a stately French manor in a serene Westchester suburb.  What they did not see was the alleged rampant financial fraud that was happening.  As a result of her alleged fraud, Barbara Meyzen has potentially earned herself a reservation for one in federal prison.”

According to the allegations in the Complaint filed yesterday and unsealed today[1]:

MEYZEN has owned and operated the La Crémaillère Restaurant in Banksville, New York, since 1993.  From August 2015 to July 2016, MEYZEN submitted applications for credit on behalf of La Crémaillère to at least nine lenders, factors, and financiers.  In support of those applications, MEYZEN gave the potential lenders La Crémaillère’s bank statements that she had modified to change negative balances to positive balances; to remove references to checks returned for insufficient funds; and to reduce service fees.  For example, MEYZEN modified one month’s statement to change a negative beginning balance of $32,865.57 to a positive beginning balance of $27,766.29; to change from negative to positive the negative ending balance for that month of $5,268.13; and to change service charges of $2,385.60 to $8.00.  When one lender discovered that MEYZEN had altered the bank statements, MEYZEN created an email account in the name of one of the bank’s officers and sent the lender an email in which she, in the guise of the bank officer, told the lender that the statements were genuine.

MEYZEN also falsely represented to the same lender that the second mortgage on the restaurant’s property in Banksville had been discharged.  She created a false satisfaction of mortgage on which she forged the signature of a representative of the restaurant’s second mortgagee, who is MEYZEN’s relative by marriage.  MEYZEN filed the false satisfaction of mortgage with the Westchester County Clerk, paid the clerk’s filing fee, and sent a copy of the filed satisfaction of mortgage to the lender.  MEYZEN later denied filing the false satisfaction of mortgage or paying the filing fee when she was interviewed by Special Agents of the FBI.  She told the FBI that she believed a loan broker with whom she had worked in the past, and whom she identified by name, had filed the false satisfaction of mortgage.

Throughout the summer of 2017, MEYZEN charged more than $80,000 in food and restaurant supplies to one of the restaurant’s customers who had left her credit card number on file at the restaurant.  When the customer discovered the charges, MEYZEN claimed the charges were a mistake and repeatedly promised to resolve the problem.  MEYZEN gave the customer two checks in a total amount of $32,000 but the checks bounced.  When she was interviewed by the FBI, MEYZEN denied knowing anything about unauthorized charges to the customer’s credit card or ever speaking with the customer about the unauthorized charges.  MEYZEN also denied giving the customer checks.

Meyzen Family Realty Associates, LLC, which owns the real property from which the restaurant operates, filed for bankruptcy in the U.S. Bankruptcy Court in White Plains in September 2018.  La Crémaillère Restaurant Corp., which operates the restaurant, filed for bankruptcy in April 2019.  MEYZEN is a part owner of both entities.  In May 2019, MEYZEN misled the office of the United States Trustee, which oversees bankruptcy cases, about insurance coverage on the restaurant property.  MEYZEN caused her bankruptcy counsel to give the United States Trustee and an attorney for Meyzen Family Realty’s largest creditor documents indicating that the property was insured when, in fact, the insurance coverage had been canceled months earlier for nonpayment.  MEYZEN knew that the coverage had been canceled because her insurance broker had communicated with her several times about the cancellation of the policies.  In June 2019, MEYZEN falsely testified under oath in a deposition conducted by the United States Trustee that she was not aware that the insurance had been canceled when she caused her attorney to turn the documents over to the United States Trustee. 

Two days after La Crémaillère filed for bankruptcy in April 2019, MEYZEN opened a bank account in her name and diverted more than $40,000 of the restaurant’s credit card receipts to that account.  MEYZEN used a portion of that money to make payments to a food distributor and to an in-home nursing service.  This account was closed on May 1, 2019.  On May 7, 2019, MEYZEN opened an account in the name of Honey Bee Farm, LLC, at another bank and diverted La Crémaillère’s credit card receipts, as well as $20,000 in advances on La Crémaillère’s future credit card revenue, to that account.  MEYZEN used a portion of that money to make a payment on Meyzen Family Realty’s mortgage and to pay food distributors, two wine wholesalers, a commercial trash service, a tableware and china company, and an employee of La Crémaillère.

*                *                *

MEYZEN, 57, of Redding, Connecticut, has been charged with one count of aggravated identity theft, which carries a maximum sentence of 20 years in prison and a mandatory minimum sentence of two years in prison; one count of wire fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison; one count of credit card fraud, which carries a maximum sentence of 15 years in prison; two counts of making false statements, each of which carries a maximum sentence of five years in prison; and one count of concealing a debtor’s property, which carries a maximum sentence of five years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Mr. Berman praised the outstanding investigative work of the FBI and the United States Trustee’s Office for Region 2.

The prosecution of this case is being handled by the Office’s White Plains Division.  Assistant United States Attorney James McMahon is in charge of the prosecution.

 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.

 

Topic(s): 
Financial Fraud
Press Release Number: 
19-229
Updated July 23, 2019