San Diego Restaurant Owners Accused of Not Paying Workers

By Rory Devine and Christina London
|  Tuesday, Apr 9, 2013  |  Updated 8:45 PM PDT
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Restaurant Owners Accused of Not Paying Workers

David Dadon appeared behind glass in Superior Court Tuesday afternoon.

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Restaurant Owners Accused of Not Paying Workers

David and Barry Dadon are accused of mistreating employees by the District Attorney's office.
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A father and son are at the center of a payroll scheme involving a former College Area restaurant.

David Dadon, 61, and Barry Dadon, 27, owned the State Street Grill. On Tuesday, David was arraigned and pleaded not guilty; he is being held on $500,000 bail. Barry pleaded not guilty last week and is currently free on bail.

The pair faces 21 felony counts, including workers’ compensation premium fraud and sales tax evasion.

According to the District Attorney’s Office, the owners found their employees on Craigslist. They asked applicants to do a “training period,” seven days without pay. If they took the job, the DA said they were paid fewer than $5 an hour.

The case involves more than 20 former servers and cooks, many of them students. The District Attorney’s Office estimates the loss at more than $350,000. There could be as many as 50 additional victims.

The State Street Grill closed last December.

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