Former West Loop restaurant owner back in Chicago to face fraud charges

The former owner of a successful West Loop restaurant charged with wire fraud early last year is back in Chicago, where he was accused of ripping off his fellow investors to the tune of $300,000.

Attila Gyulai, 47, has been held in the downtown Metropolitan Correctional Center and appeared twice this week before U.S. Magistrate Judge Sidney Schenkier. On Tuesday, the judge said he’d be willing to release Gyulai under certain conditions.

Gyulai and his wife once controlled Embeya, a modern Asian restaurant in the 500 block of West Randolph. It opened in September 2012 to excellent reviews but suddenly shuttered in June 2016. Gyulai left the United States around the same time.

Prosecutors filed criminal charges in February 2018, and Gyulai was arrested in Spain last December.

On Tuesday, Assistant U.S. Attorney Matthew Getter asked Schenkier to keep Gyulai locked up, arguing that Gyulai has been to Ecuador, Mexico, Hungary and other countries while the criminal case was pending.

“He had to have known he was facing charges,” Getter said.

But John Theis, Gyulai’s defense attorney, noted that Gyulai left the country before criminal charges were filed, and he said Gyulai had been visiting sick relatives who have since died. He said Gyulai has been “trying to get this resolved” and has no incentive to flee.

Schenkier acknowledged the risk that Gyulai might run, but he ultimately agreed to order Gyulai’s release. The judge conditioned that release upon a $250,000 secured bond and said Gyulai must live under home incarceration with friends in Chicago, assuming they pass a background check. He also said Gyulai must surrender any passport.

The feds have alleged that Gyulai and his wife were seen taking lavish personal vacations and wearing expensive clothing while Embeya shareholders waited in vain to reap the benefits of the restaurant’s success.

When challenged by the restaurant’s executive chef and his wife, Gyulai fired them, according to a criminal complaint. The chef then sued for $90,000 in unpaid wages and found through his lawsuit that Gyulai had been stealing money, according to federal prosecutors.