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Renowned Nightclub Owner Arrested for $31k in Fraudulent Checks

Verboten nightclub in Williamsburg, Brooklyn was seized on March 30th by the Department of Taxation & Finance for failing to pay over $360,000 in taxes. Shortly after, the iconic club filed for chapter 11 bankruptcy and was allowed to reopen.

Now, just a week later, the NYPD confirmed that owner Jen Schiffer was arrested on April 7th for writing $31,000 worth of fraudulent checks and is now in custody. All of this comes after investors had already accused Schiffer and husband John Perez for mismanagement and fraud.

When Schiffer and Perez were not reporting the venue's finances and operations, a letter was written indicating that fourteen investors were taking legal action against the couple for hiding revenue, directing deposits to personal accounts, recording fraudulent expenditures and failing to pay taxes.

The letter also claimed an overdue payroll with several staff members were being underpaid. Schiffer and Perez were already defendants in another lawsuit by this point for withholding wages, stealing employee tips and sexual harassment.

Jen Schiffer of Verboten NYC arrested on Fraud charges. Hmmm. Who didn't you pay this time? (stand by for the police...

Posted by Boston TimPoleet on Thursday, April 7, 2016

Berlin producer DJ Lee Jones took a quick survey on his Facebook page asking what artists had been "ripped off by Verboten in New York." Artists Heidi and Matthias Meyer commented verifying that the club owed their labels owed significant amounts while other agents and artists chimed in.

Cover photo via 6am-group.com
Sources: 6am Group
and Gothamist

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