Report: Scalo's Owner Facing Legal Challenges


From KOB-TV: 

Scalo, the well-known Italian restaurant in Nob Hill has been closed for weeks. The restaurant’s Facebook page has attributed the closure to water damage and facilities issues, but court documents show there’s a fight over the restaurant’s ownership.

Steve Paternoster’s estranged wife, Jane Fertig, filed an emergency motion for exclusive control of the business.

According to court documents, Fertig claims Paternoster’s behavior drastically changed 18 months ago. Documents detail a struggle with addiction and mismanagement.

Fertig claims Paternoster took $500,000 from restaurant funds for personal use. He also allegedly took money from the cash register and tips that were for restaurant employees. Fertig claims Paternoster also caused the head chef to quit his job.

The Dec. 18 filing said Paternoster “now arrives at the businesses randomly and makes scenes in from of the staff and patrons.”

Other documents show filings to foreclose on Paternoster’s house. He also has an active arrest warrant for driving with a suspended license and fleeing the scene of an accident.

The sign outside the Scalo says it will reopen after the holidays.

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