Restaurant Group Pier 50 LLC Sues Former Committee Manager for Alleged $1 Million Theft

Pier 50 LLC filed a lawsuit in March in Suffolk County Superior Court against Demetri Tsolakis, the former general manager of Committee, a Mediterranean restaurant in Boston's Seaport district. The complaint alleges that Tsolakis diverted more than $1 million in corporate funds to personal expenses and to support his competing restaurants, including Krasi, Bar Vlaha, Kaia, and others operated by his company, Xenia Greek Hospitality.

Tsolakis served as CEO of Xenia Greek Hospitality.

Tsolakis was hired as Committee's general manager in May 2014, about a year before the restaurant opened to the public in June 2015. He held the position until May 2023, according to the lawsuit. During this period, he worked with George Aboujaoude, the owner of Committee, as well as Eva and Tacos El Chikis, who previously operated the Bijou nightclub.

The complaint states that Tsolakis had broad access to the restaurant's safe, checking accounts, and credit cards as general manager. It alleges he diverted funds through various schemes over his nearly 10-year employment, including taking cash from restaurant receipts and petty cash funds. Pier 50 LLC claims these actions supported Tsolakis' other businesses.

The lawsuit details specific instances of alleged misuse.

In one case, Tsolakis directed a cleaning company hired by Committee to provide services to his other restaurants, telling the vendor the businesses were commonly owned, resulting in about $150,000 charged to Committee. The complaint also accuses him of misrepresenting restaurant ownership to divert payments for services such as printing ($300,000), floral arrangements ($250,000), and plate ware ($180,000).

“— Tsolakis' attorney (The Boston Globe)”

Tsolakis allegedly used Committee's debit card and checkbook to pay for interior decorations and printing for his restaurants. The lawsuit further claims he took money from Committee's tip pool to pay employees at his other restaurants and wrote checks using corporate funds for renovations and repairs at his home.

attorneys stated that he served as general manager only until 2017, the year he opened his first Greco restaurant in Back Bay, and did not maintain the level of financial control alleged. From 2017 to 2020, he transitioned to director of operations, and afterward worked as a consultant without managing finances.

The attorneys noted that invoices and purchases required approval by an accountant for most of the period in question. The attorneys added that Tsolakis relied on his own investors to fund his restaurants, and that Aboujaoude may have been an early small investor in Tsolakis' fast-casual Greco restaurant.

Aboujaoude's LinkedIn profile suggests an association with the restaurant. They also pointed out that overlapping vendors are common in the restaurant industry, such as a premium wax paper used at both Greco and Committee. The lawsuit accuses Tsolakis of using $100,000 in restaurant funds to purchase wax paper and other goods from a Maine-based branding company.

Committee's owners began investigating the alleged activity in 2023. Pier 50 LLC is seeking more than $1 million in damages.