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Details of Cypress Club bankruptcy

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Details of Cypress Club bankruptcy

Ruth Lafler | Dec 12, 2001 04:33 PM

I was shocked (and I don't shock easily) to read some of the details surrounding of the Cypress Club in today's Chron (Inside Scoop column, linked below).

Okay, I understand that the restaurant business is volatile, the expenses are high and the profit margins small. I can even understand a restaurant closing down suddenly, with no notice.

But the situation at Cypress Club seem to go far beyond that. For example, I can't see any excuse for having back tax problems going back to the years before the boom. Some of the behavior described appears to be fraud (i.e., continuing to deduct money for employee benefits after letting the policies lapse for nonpayment, cashing a deposit check for an event you know will not be held).

Why is it that when someone steals $30 from your wallet he's a low-life thief, but when someone misappropriates tens of thousands of dollars due to employees, customers, and suppliers, people don't consider him a criminal? Or do you?

Link: http://www.sfgate.com/cgi-bin/article...

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