THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, May 3, 1995 TAG: 9505030428
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MARC DAVIS, STAFF WRITER
LENGTH: Medium: 86 lines
The Jewish Mother, a popular Virginia Beach Oceanfront restaurant that was raided last year by the Internal Revenue Service, then cleared of all charges, faces the possible loss of its liquor license.
On Tuesday, the state liquor board started hearings in its Chesapeake headquarters. A ruling is expected next month.
The state Department of Alcoholic Beverage Control has accused the Jewish Mother of 10 violations, including employing a convicted felon, Scotty Miller, as general manager.
ABC agents also claim that the Jewish Mother bought liquor with its Virginia Beach license, then sold the booze in its Norfolk restaurant from December 1993 to August 1994 in violation of state regulations. The Norfolk eatery closed after surrendering its liquor license in August 1994.
The agency also says that co-owners John R. Colaprete and Theodore M. Bonk are ``not persons of good moral character and repute,'' and that the restaurant ``cannot demonstrate financial responsibility.''
The Virginia Beach Jewish Mother is an Oceanfront institution that has become a mecca for local blues and folk music fans. Keeping its liquor license is crucial.
``I'm still reeling from everything that's happened in the past year,'' Colaprete said Tuesday during a break in the hearing.
In April last year, the IRS and ABC conducted joint raids on the two Jewish Mother restaurants and on the homes of co-owner Colaprete and manager Miller. The agents carted away a truckload of cash registers, receipts, ledgers, checks, computers, calendars, Rolodexes and other things, but never explained why.
Five months later, in September, the IRS returned everything and announced it would not press charges, but still did not explain why it had raided the restaurants and homes.
The troubles were linked to a bookkeeper who allegedly stole about $50,000 from the Beach restaurant, then became an informant to the federal agents when she was caught. Her information, in part, led to the search warrants, an ABC agent testified Tuesday.
The bookkeeper was later indicted for embezzlement, but the affidavit containing her statement, which led to the search warrants, remains sealed. Even the Jewish Mother's owners and lawyers cannot see it.
At Tuesday's hearing, the restaurant's attorney, Kenneth W. Stolle, tried to keep out documents that he said the ABC got from those searches.
``I'm distressed by some of the methods the ABC has utilized to gain evidence in this case,'' Stolle told the hearing officer.
The hearing officer overruled nearly all of Stolle's objections.
Stolle also tried to keep out documents related to the Norfolk Jewish Mother. He claimed the Norfolk and Virginia Beach restaurants were separate, run by different corporations.
But a Norfolk city employee testified Tuesday that it was Moms Inc., owner of the Beach restaurant, that initially put up the surety bond to let the Norfolk restaurant get its city business license.
``There seems to be a direct connection between the Jewish Mother in Norfolk and the Jewish Mother in Virginia Beach, based on these surety documents,'' the hearing officer, Thomas L. Baynham, said.
Another part of the ABC's case hinges on whether Scotty Miller is the restaurant's general manager. Miller has a prior drug conviction, and felons cannot work in ABC-licensed restaurants without the ABC Board's permission. In 1991, the board let the Jewish Mother employ Miller, but only if he was not general manager.
On Tuesday, two former employees testified that Miller remained general manager even after the board's ruling. One ex-employee said she was told to lie about Miller's status if an ABC agent ever asked.
In newspaper interviews last year, Miller also identified himself as the general manager.
Four witnesses, including an ABC special agent, testified against the restaurant Tuesday. A dozen more witnesses are expected when the hearing resumes June 15. ILLUSTRATION: File color photo
The Jewish Mother is Virginia Beach was raided last year by the
Internal Revenue Service. Hearings are under way on whether the
restaurant will lose its liquor license.
Graphic
THE CHARGES
[For complete graphic, please see microfilm]
by CNB