A recent lawsuit claims that the Midtown Tower, which has ties to Donald Trump, misused federal funds intended for employee compensation during the Covid pandemic.
Maple Hospitality Group, the owner of Maple & Ash, is accused of fraudulently obtaining $7.6 million from a Small Business Paycheck Protection Program fund, according to a civil suit filed by investors in Cook County Circuit Court in Chicago.
The lawsuit states, “MA Restaurants have never received a dollar of these funds.”
Details from the lawsuit suggest that this alleged misappropriation is part of a larger pattern of financial wrongdoing by Gerald Rusky, co-owner of Maple & Ash, as well as his brother, James Rusky, and the companies they manage.
The suit mentions “private jet fees,” while local news outlets noted that costly Learjet payments in 2021 were linked to a company led by James Rusky.
Despite being filed three years ago, the original complaint has not drawn significant media attention outside of Chicago.
In a related development reported in February, Maple Hospitality Group secured a 12,000-square-foot lease at 1290 Sixth Ave., with Trump’s involvement generating over $60 million in annual rental income.
Having launched in 2015, Maple & Ash has quickly risen to become the fourth-highest-grossing restaurant in the United States, making over $35 million annually.
However, the issues in Chicago seem as intense as the restaurant’s reputation.
The complaint indicates that the owners raised $3 million each to establish Maple & Ash in Chicago and Scottsdale, Arizona, but they reportedly misused profits to support other restaurant ventures.
Allegations have surfaced that the Laskys retaliated against investors for pursuing legal action by adjusting benefits to the company.
A judge recently ruled against James Rusky for neglecting court orders related to bank records and other documentation and ordered him to pay $191,000 in legal fees to the plaintiffs due to these actions.
Michael Forde, the attorney representing the investors, expressed hope that the case could progress to trial early next year.
No immediate response has been received from James Stamos, who is representing James Rusky.
Meanwhile, Maple & Ash opened another steakhouse in Miami this past March, with Haut Living Magazine describing their dining experience as a blend of elegance and high energy, set to expand into the Big Apple later this year.
