SCRANTON — The former business manager of the Ritz Theater is accused of stealing more than $74,000 from the fledgling business, which opened it doors in June 2024.
James Olecki, 48, of Clarks Summit is accused of stealing the funds from Ritz PAC Holdings LLC, according to a criminal complaint.
The charges stem from a report from Joshua Balz, who told police Olecki stole from business accounts made through his designated debit card, the complaint reads. Balz is majority owner and managing member of Ritz PAC LLC, Ritz Entertainment and Masterbalz LLC, which collectively own and operate the Ritz Theater and Noir Dark Spirits Restaurant, according to the complaint.
Balz, who discovered the alleged theft in January and soon after filed a civil lawsuit against Olecki, which has not yet been resolved, said discovering the theft removed a major roadblock to the business’s success.
His lawsuit requests restitution of the misappropriated funds, fees and costs, damages and attorney fees.
Looking back over the past year, Balz remembers Olecki telling him frequently that funds were low and that he needed to spend carefully. Balz attributed the financial challenges to growing the new business and didn’t suspect theft.
Balz currently owns the business with James Olecki’s wife, Linnell Olecki. The two are in the process of reaching a settlement to sell her portion of the company, Balz said.
He does not hold Linnell Olecki accountable for her husband’s actions in any way, Balz said.
The theft has not only challenged the business financially, but left Balz shaken.
He remembers Olecki giving him gifts for his birthday and Christmas. When Balz’s mother died, Olecki told him, “I hope tomorrow will be a better day.”
Still, Balz said he believes the company will now face a “brighter future,” free from the challenges Olecki’s alleged thefts brought.
Olecki tells a different story
Olecki, however, put out a news release through his attorney, Jason Shrive, Wednesday afternoon, which tells a different story.
The release states Balz erroneously claimed to be the “majority owner” of the business, when in fact Olecki single-handedly orchestrated, negotiated and executed the purchase of the Ritz Theater, served as CEO of business ventures and ran the day-to-day business affairs, rather than simply being a consultant or business manager.
“It is ironic that Balz, who did not put any equity into the business venture, is now coincidentally claiming that the amount allegedly ‘stolen’ by Olecki, is the approximate amount of the capital contribution made by Olecki and his wife, to buy in to the business,” the release states.
The release concluded urging support from Olecki’s friends, family, business associates and the Scranton community, describing Balz’s action as a “hostile takeover of a business enterprise.”
Criminal complaint filed
About six weeks before Balz filed a police report, a staff member approached Balz and asked him if he frequently withdraws money from ATMs, during a forensic audit of three business accounts.
Balz said the account referenced was used only for paying the mortgage.
He noticed multiple discrepancies, including ATM cash withdrawals and Cash App transactions to a “Molly and Diamond.”
Balz questioned Olecki about the transactions Jan. 15 in a text, indicating that he had noticed fraudulent Cash App transactions.
Although Olecki responded “all good,” his demeanor changed after the exchange and he stopped going to work meetings.
Balz pulled Olecki’s debit card numbers and noted the fraudulent transactions were connected to the card.
“Olecki offered no explanation or supporting documentation for the illegitimate purchases,” the criminal complaint states. “There was no evidence that the expenditures from Olecki’s debit card and checks were related to any approved or official business purchases.”
Balz terminated Olecki’s employment Jan. 27.
Detective Jennifer Gerrity obtained the operating agreement for Ritz PAC Holdings LLC, and noted that the agreement lists Joshua Balz and Linnell Olecki as having 50% ownership each. James Olecki was listed as CEO and responsible for managing day-to-day business, with authority to sign checks.
Gerrity spoke with Balz’s business partner, Linnell Olecki. She said she hadn’t approved any business transactions by James Olecki.
Balz provided bank statements from First Keystone Community Bank for the accounts pertaining to Ritz PAC, Ritz Entertainment and Noir.
Balz advised that James Olecki was the sole user of the debit card in question
Gerrity noted an ATM withdrawal from Citizen’s Bank, 1142 Northern Boulevard, Clarks Summit that was posted to the Ritz Entertainment account Jan. 23. She determined James Olecki was responsible for the withdrawal through surveillance images.
“Olecki did not provide receipts for the Citizen’s Bank transaction and other withdrawals to the three accounts totaling $74,892.00,” according to the criminal complaint.
Olecki is charged with theft by unlawful taking. A preliminary hearing is scheduled for April 9 before District Judge Paul Ware.
