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IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS

COUNTY DEPARTMENT, LAW DIVISION

Prestige Restaurant, Inc., an Illinois corporation, )

Terroir Restaurant, Inc., an IlJinois corporation, )
808 W. Lake Street, LLC, an Illinois limited )
liability company, More Prestige, LLC, an Illinois )
limited liability company, and 615 W. Randolph, )
LLC, an Illinois limited liability company, )
)
Plaintiffs, )
)
V. ) Case No.
)
Renee M. Johnson, )
)
Defendant. )

COMPLAINT i
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Prestige Restaurant, Inc., an Illinois corporation ("Prestige"), Terroir Restaurant, Inc., an
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Illinois corporation ("Terroir"), 808 W. Lake Street, LLC, an Illinois lii11hed liabilitycompany
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("808 Lake"), More Prestige, LLC, an Illinois limited liability company tMore Prestige"), and
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615 W. Randolph, LLC, an Illinois limited liability company ("615 Randolph") (co11ectively,

"Plaintiffs", by their attorneys, Scott & Kraus, LLC, complain against Defendant, Renee M.

Johnson, an individual ("Defendant"), as follows:

GENERAL ALLEGATIONS

Nature of the Case

I. Plaintiffs bring this action for damages due to Defendant's brazen, long-standing

embezzlement scheme in which she stole hundreds of thousands of dollars from Plaintiffs over the

course of several years. Defendant was employed as a bookkeeper for Prestige and later both

Prestige and Terroir and had access to and check-writing authority for Plaintiffs' operating

accounts. Defendant perpetuated her scheme by writing company checks directly to Defendant's

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personal creditors and then concealing her activity by falsely and intentionally recording those

payments to her personal creditors as bona fide business checks Plaintiff.

Parties

2. Plaintiff Prestige is an Illinois corporation with its principal place of business at

808 W. Lake Street, Chicago, Cook County, Illinois. Prestige does business as Blackbird

Restaurant.

3. Terroir Restaurant, Inc., an Illinois corporation with its principal place of business

at 808 W. Lake Street, Chicago, Cook County, Illinois. Terroir does business as avec Restaruant.

4. 808 Lake is an Illinois limited liability company with its principal place of business

at 808 W. Lake Street, Chicago, Cook County, Illinois.

5. More Prestige is an Illinois limited liability company with its principal place of

business at 808 W. Lake Street, Chicago, Cook County, Illinois.

6. 615 Randolph is an Illinois limited liability company with its principal place of

business at 808 W. Lake Street, Chicago, Cook County, Illinois.

7. Defendant is an individual who resides at 5007 W. Berteau Avenue, Chicago, Cook

County, Illinois 60641.

Jurisdiction and Venue

8. This Court possesses personal jurisdiction over Defendant, a resident of Illinois.

9. Venue is proper in Cook County as Defendant resides in Cook County and the

actions at issue in this Complaint occurred in Cook County.

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Defendant's Employment with Plaintiff

10. During all relevant times, Defendant was employed by either Prestige or by both

Prestige and Terroir as a bookkeeper.

11. Defendant is the sister of one of the equity partners in Prestige and Terroir.

12. Defendant's duties and responsibilities as a bookkeeper included, but were not

limited to, performing accounts payable and accounts receivable functions, performing bank

reconciliations, recording accounting journal entries, processing payroll, preparing operational

financial statements and making cash deposits.

13. Defendant was a signatory on the operating bank accounts of all Plaintiffs.

Defendant had check-writing authority for the checking accounts of Plaintiffs.

Plaintiffs Discover Accounting Discrepancies

14. In the summer of 2017, the Chief Financial Officer for Plaintiff's management

company noticed that Defendant's journal entries were not adding up and began an investigation

into Defendant's accounting and check-writing practices.

15. As part of the investigation, Plaintiffs ordered bank statements and copies of checks

from their current and prior bank. Upon reviewing the copies of cancelled checks and bank

statements, Plaintiffs determined that since at least 2011, Defendant had been writing checks on

Plaintiffs' accounts to Defendants' personal creditors, including but not limited to Nationstar,

Bank of America, CitiCard, Gold Coast Bank, Discover, Wells Fargo, JP Morgan Chase, Allstate

and Everhome. None of these payments to Defendant's personal creditors were authorized by

Plaintiffs.

')

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Defendant Does Not Deny Theft

16. Upon completion of their investigation, representatives from Plaintiff confronted

Defendant about the bank statements and cancelled checks. Defendant did not deny the

allegations. Defendant was immediately terminated.

Extent of Theft

17. From 2011 through mid-August 2017, Defendant wrote unauthorized checks to her

personal creditors in the aggregate amount of $609,574.22.

18. From 2011 through mid-August 2017, Defendant wrote unauthorized checks to her

personal creditors on Prestige's checking accounts in the amount of$341,417.43.

19. From 2011 through mid-August 2017, Defendant wrote unauthorized checks to her

personal creditors on Terroir's checking accounts in the amount of $221,241.50.

20. From 2013 through mid-August 2017, Defendant wrote unauthorized checks to her

personal creditors on 808 Lake's checking accounts in the amount of $22,317.29.

21. From 2014 through mid-August 2017, Defendant wrote unauthorized checks to her

personal creditors on More Prestige's checking accounts in the amount of $17,334.00.

22. From 2016 through mid-August 2017, Defendant wrote unauthorized checks to her

personal creditors on 615 Randolph's checking accounts in the amount of $7,264.00.

23. Defendant concealed her actions to perpetuate her scheme by making entries in

Plaintiffs' check registers reflecting payments to Plaintiffs' actual vendors, so as to mislead

Plaintiffs.

COUNT I - CONVERSION - PRESTIGE

24. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations as if set

forth in full in this paragraph 24 of Count I.

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 25. In 2011, Defendant wrote 41 unauthorized checks from Prestige's Bridgeview

Bank checking account to her personal creditors in the aggregate amount of $90,652.45.

26. In 2012, Defendant wrote 48 unauthorized checks from Prestige's Bridgeview

Bank checking account to her personal creditors in the aggregate amount of $44,044.23.

27. In 2013, Defendant wrote 74 unauthorized checks from Prestige's Bridgeview

Bank checking account to her personal creditors in the aggregate amount of $74,687.04.

28. In 2014, Defendant wrote 52 unauthorized checks from Prestige's Bridgeview

Bank checking account to her personal creditors in the aggregate amount of $41,606.95.

29. In 2015, Defendant wrote 27 unauthorized checks from Prestige's Bridgeview

Bank checking account to her personal creditors in the aggregate amount of $47,626.43.

30. In 2016, Defendant wrote 5 unauthorized checks from Prestige's Bridgeview Bank

checking account to her personal creditors in the aggregate amount of $13,018.00.

31. In 2016 and 2017, Defendant wrote 19 unauthorized checks from Prestige's MB

Financial Bank checking account to her personal creditors in the aggregate amount of $29,782.33.

32. The total amount of unauthorized checks written by Defendant to her personal

creditors on Prestige's checking accounts from 2011 through mid-august 2017 is $341,417.43.

33. Prestige was the owner of the funds converted by Defendant, as identified in

paragraphs 25-32 of this Count I.

34. Defendant intentionally concealed her actions from Prestige by making accounting

entries which led Prestige to believe that the checks had been written to actual vendors of Prestige.

35. Upon discovery of Defendant's scheme, a demand for the return of the money -

Prestige's property- would have been futile as Defendant no longer possessed Prestige's property.

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 36. As a result of Defendant's conversion of Prestige's property, Prestige has been

damaged in an amount ofat least $341,417.43.

37. Defendant's conduct was fraudulent, and willful, entitling Prestige to punitive

damages.

WHEREFORE, Plaintiff, Prestige Restaurant, Inc., requests that this Court enter judgment

in its favor and against Defendant, Renee M. Johnson, in the amount of at least $341,417.43 on

Count I, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief

this Court deems proper.

COUNT II - CONVERSION - TERROIR

38. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations as if set

forth in full in this paragraph 38 of Count II.

39. In 2011, Defendant wrote 21 unauthorized checks from Terroir's Bridgeview Bank

checking account to her personal creditors in the aggregate amount of $39,849.10.

40. In 2012, Defendant wrote 28 unauthorized checks from Terroir's Bridgeview Bank

checking account to her personal creditors in the aggregate amount of $24,557.69.

41. In 2013, Defendant wrote 63 unauthorized checks from Terroir's Bridgeview Bank

checking account to her personal creditors in the aggregate amount of $43,029.70.

42. In 2014, Defendant wrote 67 unauthorized checks from Terroir's Bridgeview Bank

checking account to her personal creditors in the aggregate amount of $39,558.57.

43. In 2015, Defendant wrote 27 unauthorized checks from Terroir's Bridgeview Bank

checking account to her personal creditors in the aggregate amount of $49,466.48.

44. In 2016, Defendant wrote 2 unauthorized checks from Terroir's Bridgeview Bank

checking account to her personal creditors in the aggregate amount of $4,192.00.

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 45. In 2016 and 2017, Defendant wrote 14 unauthorized checks from Terroir's MB

Financial Bank checking account to her personal creditors in the aggregate amount of $20,587.90.

46. The total amount of unauthorized checks written by Defendant to her personal

creditors on Terroir's checking accounts from 2011 through mid-august 2017 is $221,241.50.

47. Terroir was the owner of the funds converted by Defendant, as identified 111

paragraphs 39-46 of this Count II.

48. Defendant intentionally concealed her actions from Terroir by making accounting

entries which led Terroir to believe that the checks had been written to actual vendors of Terroir.

49. Upon discovery of Defendant's scheme, a demand for the return of the money -

Terroir's property - would have been futile as Defendant no longer possessed Terroir's property.

50. As a result of Defendant's conversion of Terroir's property, Terroir has been

damaged in an amount of at least $221,241.50.

51. Defendant's conduct was fraudulent, and willful, entitling Terroir to punitive

damages.

WHEREFORE, Plaintiff, Terroir Restaurant, Inc., requests that this Court enter judgment

in its favor and against Defendant, Renee M. Johnson, in the amount of at least $221,241.50 on

Count II, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief

this Court deems proper.

COUNT III - CONVERSION - 808 LAKE

52. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations as if set

forth in full in this paragraph 52 of Count Ill.

53. In 2013-2014, Defendant wrote 9 unauthorized checks from 808 Lake's

Bridgeview Bank checking account to her personal creditors in the aggregate amount of $5,460.74.

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 54. In 2016 and 2017, Defendant wrote 7 unauthorized checks from 808 Lake's MB

Financial Bank checking account to her personal creditors in the aggregate amount of$16,856.55.

55. The total amount of unauthorized checks written by Defendant to her personal

creditors on 808 Lake's checking accounts from 2014 through mid-August 2017 is $22,317.29.

56. 808 Lake was the owner of the funds converted by Defendant, as identified in

paragraphs 53-55 of this Count III.

57. Defendant intentionally concealed her actions from 808 Lake by making

accounting entries which led 808 Lake to believe that the checks had been written to actual vendors

of 808 Lake.

58. Upon discovery of Defendant's scheme, a demand for the return of the money -

808 Lake's property - would have been futile as Defendant no longer possessed 808 Lake's

property.

59. As a result of Defendant's conversion of 808 Lake's property, 808 Lake has been

damaged in an amount of at least $22,317.29.

60. Defendant's conduct was fraudulent, and willful, entitling 808 Lake to punitive

damages.

WHEREFORE, Plaintiff, 808 W. Lake Street, LLC, requests that this Court enter judgment

in its favor and against Defendant, Renee M. Johnson, in the amount of at least $22,317.29 on

Count III, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief

this Court deems proper.

COUNT JV - CONVERSION - MORE PRESTIGE

61. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations as if set

forth in full in this paragraph 61 of Count IV.

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 62. In 2014-2015, Defendant wrote 2 unauthorized checks from More Prestige's

Bridgeview Bank checking account to her personal creditors in the aggregate amount of $7,891.68.

63. In 2016 and 2017, Defendant wrote 5 unauthorized checks from More Prestige's

MB Financial Bank checking account to her personal creditors in the aggregate amount of

$9,442.32.

64. The total amount of unauthorized checks written by Defendant to her personal

creditors on More Prestige's checking accounts from 2014 through mid-August 2017 is

$17,334.99.

65. More Prestige was the owner of the funds converted by Defendant, as identified in

paragraphs 62-64 of this Count IV.

66. Defendant intentionally concealed her actions from More Prestige by making

accounting entries which led More Prestige to believe that the checks had been written to actual

vendors of More Prestige.

67. Upon discovery of Defendant's scheme, a demand for the return of the money -

More Prestige's property - would have been futile as Defendant no longer possessed More

Prestige's property.

68. As a result of Defendant's conversion of More Prestige's property, More Prestige

has been damaged in an amount of at least $17,334.00.

69. Defendant's conduct was fraudulent, and willful, entitling More Prestige to punitive

damages.

WHEREFORE, Plaintiff, More Prestige, LLC, requests that this Court enter judgment in

its favor and against Defendant, Renee M. Johnson, in the amount of at least $17,334.00 on Count

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IV, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief this

Court deems proper.

COUNT V -CONVERSION - 615 RANDOLPH

70. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations as if set

forth in full in this paragraph 70 of Count V.

71. In 2016 and 2017, Defendant wrote 5 unauthorized checks from 615 Randolph's

MB Financial Bank checking account to her personal creditors in the aggregate amount of

$7,264.00.

72. 615 Randolph was the owner of the funds converted by Defendant, as identified in

paragraph 71 of this Count V.

73. Defendant intentionally concealed her actions from 615 Randolph by making

accounting entries which led 615 Randolph to believe that the checks had been written to actual

vendors of 615 Randolph.

74. Upon discovery of Defendant's scheme, a demand for the return of the money -

615 Randolph's property - would have been futile as Defendant no longer possessed 615

Randolph's property.

75. As a result of Defendant's conversion of 615 Randolph's property, 615 Randolph

has been damaged in an amount of at least $7,264.00.

76. Defendant's conduct was fraudulent, and willful, entitling 615 Randolph to punitive

damages.

WHEREFORE, Plaintiff, 615 W. Randolph, LLC, requests that this Court enter judgment

in its favor and against Defendant, Renee M. Johnson, in the amount of at least $7,264.00 on Count

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V, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief this

Court deems proper.

COUNT VI -BREACH OF FIDUCIARY DUTY -PRESTIGE

77. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations and

paragraphs 25-32 of Count I as if set forth in full in this paragraph 77 of Count VI.

78. Defendant was an employee of Prestige from and before 2011 through her

termination in August 2017.

79. Prestige placed Defendant in a position of trust through her employment by

authorizing her to write checks on behalf of Prestige and the other Plaintiffs, and by assigning

Defendant duties and responsibilities which included, but were not limited to, performing accounts

payable and accounts receivable functions, performing bank reconciliations, recording accounting

journal entries, processing payroll, preparing operational financial statements and making cash

deposits.

80. At all times during her employment, Prestige compensated Defendant with wages

in accordance with Prestige and Defendant's oral agreement for salary which was in effect from

time to time.

81. Defendant owed Prestige, her employer, a fiduciary duty of loyalty to act in the best

interests of Prestige.

82. Defendant flagrantly breached her duty of loyalty by perpetuating her scheme to

defraud Prestige, wherein she used her position of trust to write unauthorized checks to her

personal creditors from Prestige's account.

83. Prestige has been damaged by Defendant's breaches of fiduciary duty in the amount

ofat least $341,417.43.

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 84. Prestige is also entitled to recoup from Defendant the amounts paid to Defendant

for the period in which she was breaching her fiduciary duties to Prestige; an amount to be proven

at trial.

WHEREFORE, Plaintiff, Prestige Restaurant, Inc., requests that this Court enter judgment

in its favor and against Defendant, Renee M. Johnson, in the amount of at least $341,417.43 on

Count VI, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief

this Court deems proper.

COUNT VII - FRAUD - PRESTIGE

85. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations and

paragraphs 25-32 of Count I as if set forth in full in this paragraph 77 of Count VII.

86. Defendant made material misrepresentations to Prestige by representing that the

false bookkeeping entries she made to conceal unauthorized payments to her creditors were true

and correct accounting entries.

87. Defendant intentionally and maliciously and with the intent to defraud Prestige

caused Prestige to make payments to Defendant's personal creditors for Defendant's personal

obligations and which were not, as represented by Defendant in her accounting entries, for bona

fide obligations of Prestige.

88. When causing Prestige to make payments as described herein, Defendant

intentionally misrepresented the true recipients of the payments in order to conceal that the

payments were made to her personal creditors.

89. Defendant's actions were deliberate and part of a scheme to defraud Prestige for

her pecuniary benefit.

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 90. In reliance on Defendant's misrepresentations, Prestige inadvertently made

payments to Defendant's personal creditors for which it received no value.

91. Defendant utilized her position of trust and authority within Prestige to defraud

Prestige.

92. As a result of Defendant's fraudulent actions, Prestige was damaged in the amount

of at least $341,417.43.

93. As a result of Defendant's willful acts to defraud Prestige, Prestige is entitled to

punitive damages.

94. As a result of Defendant's willful acts to defraud Prestige, Prestige is entitled to its

costs, expenses and attorneys' fees incurred in bringing this action.

WHEREFORE, Plaintiff, Prestige Restaurant, Inc., requests that this Court enter judgment

in its favor and against Defendant, Renee M. Johnson, in the amount of at least $341,417.43 on

Count VII, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief

this Court deems proper.

COUNT VIII - FRAUD - TERROIR

95. Plaintiffs repeat and alleges paragraphs 1-23 of the General Allegations and

paragraphs 39-46 of Count II as if set forth in full in this paragraph 95 of Count VII.

96. Defendant made material misrepresentations to Terroir by representing that the

false bookkeeping entries she made to conceal unauthorized payments to her creditors were true

and correct accounting entries.

97. Defendant intentionally and maliciously and with the intent to defraud Terroir

caused Terroir to make payments to Defendant's personal creditors for Defendant's personal

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obligations and which were not, as represented by Defendant in her accounting entries, for bona

fide obligations of Terroir.

98. When causing Terroir to make payments as described herein, Defendant

intentionally misrepresented the true recipients of the payments in order to conceal that the

payments were made to her personal creditors.

99. Defendant's actions were deliberate and part of a scheme to defraud Terroir for her

pecuniary benefit.

100. In reliance on Defendant's misrepresentations, Terroir inadvertently made

payments to Defendant's personal creditors for which it received no value.

101. Defendant utilized her position of trust and authority within Terroir to defraud

Prestige.

102. As a result of Defendant's fraudulent actions, Terroir was damaged in the amount

ofat least $341,417.43.

103. As a result of Defendant's willful acts to defraud Terroir, Terroir is entitled to

punitive damages.

104. As a result of Defendant's willful acts to defraud Terroir, Terroir is entitled to its

costs, expenses and attorneys' fees incurred in bringing this action.

WHEREFORE, Plaintiff, Terroir Restaurant, Inc., requests that this Court enter judgment

in its favor and against Defendant, Renee M. Johnson, in the amount of at least $221,241.50 on

Count Vlll, plus punitive damages, plus costs, expenses and attorneys' fees, plus any further relief

this Court deems proper.

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Miles V. Cohen
mcohen@skcounsel.com
Paige J. Esterkin
pesterkin@skcounsel.com
Scott & Kraus, LLC
150 South Wacker Drive
Suite 2900
Chicago, Illinois 60606
(312) 327-1050 (telephone)
(312) 327-1051 (facsimile)
Firm 1.D. No. 39876

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