A stunning example of New York City’s growing law-and-order crisis emerged this week after prosecutors revealed that a trusted bookkeeper quietly looted a famed Midtown Italian restaurant for years—walking off with an eye-popping $2.5 million while Manhattan’s soft-on-crime leadership looked the other way.
According to the Manhattan District Attorney’s Office, Lori Jakubowski spent seven years siphoning off money from Fresco by Scotto, the iconic eatery co-owned by Fox 5’s “Good Day New York” anchor Rosanna Scotto and known for its celebrity clientele and old-school Italian charm. Prosecutors say Jakubowski raided everything from the restaurant’s bank accounts to its employee tip pool, padding her own lifestyle while the business trusted her with its books.

The scheme allegedly included forging checks, issuing herself unauthorized payroll, and laundering cash tips—conduct so blatant that even prosecutors under progressive DA Alvin Bragg, notorious for downgrading crimes and releasing repeat offenders, were forced to act.
Assistant District Attorney Stephen MacArthur told the court that Jakubowski used her employer’s bank account like an ATM for personal expenses. Among her eyebrow-raising purchases: at least $100,000 toward a home in Pennsylvania, bought for $164,500, and even her husband’s monthly Spectrum Internet bill—charged directly to the restaurant.

To pull off the Pennsylvania house purchase, prosecutors say she issued an astonishing 88 checks and money orders over just four days, essentially draining company funds in rapid succession. Meanwhile, Jakubowski allegedly padded her income further by “overpaying herself,” writing unauthorized paychecks and falsely claiming vacation time she never earned.
Despite the scope of the alleged theft, Judge Althea Drysdale chose to release Jakubowski under supervision—yet another example of New York’s revolving door justice system. Drysdale scolded the accused thief but ultimately sent her home with a court date instead of jail time.

“You must come to court when I tell you to come to court,” the judge warned, underscoring that her Pennsylvania home gives her every incentive to flee.
Jakubowski, indicted on grand larceny and falsifying business records charges, faces up to 25 years in prison if convicted. She pleaded not guilty, and her attorney declined comment.

Fresco by Scotto—opened in 1993 and renowned for its hospitality—issued a statement confirming it is cooperating fully with investigators. The theft is a significant blow to a family-run business that has been a staple of the Midtown dining scene for decades, recently renewing its lease on Madison Avenue.
For many New Yorkers, the case is yet another reminder of what happens when trust is betrayed in an era where white-collar crime is often met with kid gloves. Under the current political climate, hardworking business owners frequently find themselves victimized twice: once by criminals, and again by a justice system unwilling to deliver real consequences.

In a city where small businesses already face soaring costs, cratering foot traffic, and rising crime, the alleged $2.5 million heist is not merely a scandal—it’s a symbol of the fragile state of law and order under Democratic leadership.
