New allegations surface in Chiarello estate case
The estate of celebrity chef Michael Chiarello has filed new fraud allegations against investors and a former executive over control of the late chef’s assets, including Bottega Napa Valley in Yountville, according to court records.
Chiarello, whose empire also included Coqueta in San Francisco, Chiarello Family Vineyards and other businesses, died suddenly in October 2023 at Queen of the Valley Medical Center following an acute allergic reaction. He was 61.
In June, two investors in the business, vintner and former Disney Studios president Richard Frank and businessman John Hansen, announced in a press release that they were taking “full ownership and management” of Bottega Napa Valley.
Chiarello’s estate filed a lawsuit in Napa County Superior Court over the sale in July. An amended complaint filed on Nov. 7 alleges forgery, fraud and collusion. The dispute has gone to arbitration, according to court filings.
Chiarello’s estate alleges investors interfered with the management of Chiarello’s restaurants to force a sale “at a very low price in order to enrich themselves,” according to the amended Nov. 7 complaint.
The court filing alleges that immediately after Chiarello’s death, the defendants “embarked on a campaign of coercion, fraud and interference to try to trick, intimidate and pressure (Chef Chiarello’s estate) to surrender to (defendants’) efforts to wrest control of the valuable assets rightfully belonging to (Chef Chiarello’s estate).”
The amended complaint further alleges that David O’Malley, former chief operating officer of Gruppo Chiarello Inc., the restaurants’ managing company, colluded with investors seeking to seize Chiarello’s assets. Among other allegations, the complaint charges that O’Malley removed and/or destroyed Gruppo Chiarello documents.
Also named as a defendant was Chiarello consultant and restaurant co-manager Peter Crowley.
According to the court filing, O’Malley allegedly backdated a document to 2017, affixing it with a stamped signature of Michael Chiarello’s to gain access to bank accounts and help the investors seize Chiarello estate’s assets. O’Malley then presented the document to the estate as if he had found them in Chiarello’s records, the filing alleges.
In a press release issued on Monday, Chiarello’s widow, Eileen Gordon, said “it was as if the moment Michael died, the professionals closest to him began dismantling his legacy from the inside – using the access they had to seize restaurants Chiarello had built, and they had benefitted from for decades.”
After Chiarello’s death, Frank “continually” met with Chiarello’s staff and instructed that Chiarello Family Vineyards’ wines should no longer be served at Chiarello’s restaurants, the amended complaint alleges, claiming that instead, he pushed wines from Frank Family Vineyards.
The defendants’ “campaign began just weeks after Chef Chiarello’s passing, as the family and community was grieving the devastating loss of the family’ patriarch and visionary,” the amended complaint alleges.
“As such, (the defendants) have compelled (the plaintiffs) to bring this suit to protect Chef Chiarello’s legacy in addition to the valuable assets and businesses created and owned by (the plaintiffs) through the decades of hard work, creativity and leadership of Chef Chiarello and (Gruppo Chiarello Inc.).”
Monday’s press release states that Gordon said the men were “minority investors” who had “no rights” to make decisions regarding the companies held by Michael Chiarello’s estate.
Jonathan Hughes, partner at Arnold & Porter, represents Frank, Hansen and others in the dispute. On Wednesday Hughes said Eileen Gordon was seeking to “re-litigate” the claims she already “brought and lost” in arbitration.
“In our view, her press release is defamatory, and we look forward to proving, again, that her claims are false,” Hughes said.
Besides restaurants such as Bottega and Coqueta and his wines, the late Chiarello was also known for his cookbooks and television shows, including “Easy Entertaining with Michael Chiarello.”
