Italian hospitality empire Cipriani is accusing two executives and a vendor of a 10-year-long fake invoice scheme in which they allegedly pocketed $3 million in kickbacks, according to a lawsuit.
The A-list chain claims former operations director Andrew Heaton approved false, inflated and duplicate invoices worth an estimated $5 million for Cipriani from Fulton Supply Hardware, and took a cut for himself, according to a lawsuit filed Thursday in Manhattan Supreme Court.
Cipriani contends Fulton issued bogus invoices since at least 2013 and that its president, Yevgeney Portnoy, and general manager, Philip Corhan, created a shell company to defraud it for services like fridge maintenance.
Former Cipriani facilities manager Franklin Palaquibay allegedly helped by placing and picking up orders to make it look like all of the products and services being invoiced were provided, the company also claimed in the lawsuit.
Heaton is also accused of having Fulton order items including $320 AirPods and a $2,000 diamond ring for him and paying for them with a Cipriani credit card.
“Lucky for you I just hooked up my jewelry guy with some plumbing stuff,” Portnoy replied to Heaton’s request for a white gold and diamond ring from Zales in 2020, according to the filing.
“I need good iPhone ear phones do u have the good ones in the store????” Heaton allegedly messaged another Fulton employee in 2021, the company contended in the litigation.
In 2022, he sent photograph of a L.L. Bean fleece sweater to Portnoy, saying, “Ask Phil to order me one,” according to messages included in the court filing.
Cipriani says Heaton never submitted invoices for the purchases or reimbursed the company for them.
Empty AirPod, Fitbit and iPhone boxes were later found in Heaton’s office, Cipriani claimed.
Heaton and Palaquibay were fired last fall.
Cipriani is seeking the exact amount in damages to be determined at trial but claims the men have at least $3 million of the $5 million it paid out on the fraudulant invoices.
The four-generation Italian mainstay, which has locations in Manhattan, London and Venice, has a storied past including tax evasion and mob ties and was allegedly a “hunting ground” for Harvey Weinstein.
