Former GM for Cosmopolitan in Allentown admits embezzlement

Nov. 12--The former general manager of the Cosmopolitan, an upscale Allentown restaurant, admitted Tuesday to embezzling his employers' money for visits to strip clubs, trips and to pay bills.

Authorities say James A. Fortunato, 41, of Coplay, stole more than $163,000 from The Cosmopolitan Restaurant.

While Fortunato denies stealing that much, he admitted stealing "thousands" while pleading guilty to theft by unlawful taking, a felony.

In return for his plea, a charge of receiving stolen property was withdrawn.

Fortunato, who spoke softly in court, faces up to seven years in prison. He's scheduled to be sentenced next month by Lehigh County Judge William E. Ford. Before he's sentenced, Ford will hold a restitution hearing so he can determine how much Fortunato stole.

Stephen Van Natten, the county's chief of prosecutions, told Ford a forensic auditor determined Fortunato sole $163,601.13.

Van Natten said Fortunato admits to stealing about $55,000.

"Did you steal from The Cosmopolitan Restaurant?" Ford asked Fortunato.

"Yes, I did," Fortunato replied.

"Was it thousands of dollars?" the judge asked.

"Yes it was," Fortunato said.

Police say Fortunato spent the restaurant's money on six visits to the Platinum Plus strip club in Allentown while he was the Cosmopolitan's general manager from October 2011 to February 2012.

Van Natten said he also spent the restaurant's money on Phillies tickets, a trip to New York and for car insurance.

At the time of his arrest in January, Fortunato was working as the general manager at Revolutions in Lower Saucon Township, a 40,000-square-foot entertainment complex that had just opened. He attended the venue's grand opening ceremony, but was fired the next day when company officials learned of his arrest.

According to a criminal complaint:

Fortunato was hired as the Cosmopolitan's manager in September 2010, the same time the restaurant opened on North Sixth Street across from Miller Symphony Hall.

A month after being hired, Fortunato was promoted to general manager, where his responsibilities included employee payroll, paying bills and collecting receipts. In addition, he had access to the restaurant's credit and debit cards.

Myron Haydt, one of the restaurant's owners, was reviewing the restaurant's financial records in June 2012 and found a series of suspected unauthorized purchases by Fortunato. Some of the money Fortunato spent included about $780 on a two-day dinner cruise and almost $6,200 at the strip club.

Fortunato was interviewed by a Lehigh County detective July 11 and admitted making 20 to 25 debit-card transactions over 10 months, which he used to pay bills. He also admitted to the strip club visits and purchases at Bed, Bath & Beyond.

Fortunato has been free on $50,000 unsecured bail.

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