The former business manager of a downtown Scranton entertainment company faces felony theft charges after police say he stole almost $75,000 from the business.
James J. Olecki, 47, of Clarks Summit, illegally withdrew the money from Ritz PAC Holdings business accounts between March and January, according to an affidavit filed by Scranton police.
Ritz Theater owner Joshua Balz fired Olecki on Jan. 27 after he failed to respond to questions about the transactions, the affidavit states.
Olecki's attorney, Jason Shrive, said his client intends to fight the charges and plans to file a defamation of character civil suit against Balz, who sued Olecki earlier this year before the criminal case.
"This is a civil dispute between owners and executives of a business, where one party is trying to gain financial and bargaining advantage over the other, by utilizing the criminal justice system," Shrive said. "He maintains his innocence and that there was no criminal wrongdoing here. Olecki believes that law enforcement will agree, after a full and thorough investigation is conducted, wherein both sides of the dispute are heard."
Olecki voluntarily turned himself in to authorities Wednesday morning, Shrive said.
He was arraigned before Magisterial District Judge Paul J. Ware and released on $20,000 unsecured bail. A preliminary hearing in the case is set for April 9.
Ritz revival
As reported by WVIA in a May 2024 feature, Olecki and Balz teamed up to transform the historic Ritz Theater on Wyoming Avenue into an arts and business hub.
Olecki, originally from Susquehanna County, spent 25 years in New York City before returning to the region to join Balz on the theater project.
Balz previously owned Noir Dark Spirits with Olecki on Penn Avenue in Scranton. The pair bought the Ritz at the end of 2023 and moved the bar and restaurant there.
“We are really trying to do wonders here in Scranton … to make downtown Scranton a destination that folks want to come to after work or on the weekends,” Olecki said last May. “We're really just opening our doors to everyone because we feel like that's what brings the community together. And that's what creates those memories.”
Theft allegations
Balz and the staff began a forensic audit of the business' three accounts (Ritz PAC, Ritz Entertainment and Noir) after a staff member raised a question about ATM withdrawals, the affidavit states.
The Ritz PAC account was strictly to be used for paying the building's mortgage, Balz told police, but he noticed ATM withdrawals and Cash App transactions to "Molly" and "Diamond."
Balz told police he messaged Olecki about the transactions on Jan. 15, to which he responded only "all good."
"Following that communication Olecki's demeanor changed. He stopped showing up to meetings," the affidavit states.
Balz reviewed Olecki's debit card numbers and found the unapproved transactions were connected to those cards.
"Olecki offered no explanation or supporting documentation for the illegitimate purchases. There was no evidence that the expenditures from Olecki's debit card and checks were related to any approved or official business purchases," the affidavit says.
Balz terminated Olecki, then filed a theft report with police on Feb. 5.
Police investigating the case found the company's operating agreement showed Balz and Olecki's wife, Linnell Olecki, each had 50% ownership of the business, while Olecki was listed as CEO — with responsibility for day-to-day operation and the authority to sign checks.
Linnell Olecki told police she did not handle business finances and did not approve any transactions by her husband.
Police said they reviewed bank surveillance footage and determined James Olecki was the person who made a $303.50 withdrawal from one of the accounts at a bank in Clarks Summit on Jan. 23.
Olecki did not provide receipts for that transaction or three others totalling $74,892, the affidavit states.
Lawyer alleges 'smear campaign'
In February, Balz sued Olecki in Lackawanna County Court, alleging embezzlement and misappropriation of funds and seeking more than $75,000 in damages.
Balz claimed Olecki spent company money on hotel stays and liquor purchases, and the Cash App transactions were for sexual encounters.
Shrive said Balz "unilaterally, and without legal authority barred Olecki from the premises," and inconsistently described Olecki as a “consultant”, “business associate”, or “business manager" while falsely describing himself as “majority owner.”
"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," Shrive said.
"Olecki is urging his family, friends, many business associates, and members of the broader Scranton community, to disregard Balz’s smear campaign and to see it for what Olecki believes it truly is, an attempt at a hostile takeover of a business enterprise, that Olecki founded and operated, without Balz having to pay fair market value for the same," Shrive said.
Balz offered a brief reply when contacted Wednesday.
"It is a lot easier to run a business when no one is stealing from it," he said.
