Former West Loop restaurant owner pleads guilty to wire fraud

The former owner of a successful high-end restaurant in the West Loop, later accused of ripping off his fellow investors, pleaded guilty Thursday to one federal count of wire fraud.

Attila Gyulai, 47, admitted his guilt to U.S. District Judge Harry Leinenweber, who scheduled his sentencing for Feb. 25. The plea came about five months after Gyulai returned to Chicago to face a four-count indictment.

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

Though he pleaded guilty Thursday, Gyulai has no deal with the government. He instead signed a five-page plea declaration that admitted his guilt to one count, but it noted he “does not agree with all of the details of the allegations.”

Specifically, Gyulai admitted that between 2014 and July 2016, he defrauded minority shareholders of Embeya by lying about his use of money generated by the restaurant. He said the scheme included a $14,992 wire transfer on Jan. 4, 2016.

The size of Gyulai’s fraud remains a point of contention in the case. Prosecutors say it exceeded $300,000.

Gyulai has faced criminal charges since February 2018. He was arrested in Spain last December. He appeared in a Chicago courtroom in June, where a prosecutor argued unsuccessfully to keep Gyulai behind bars.

The prosecutor said Gyulai had been to Ecuador, Mexico, Hungary and other countries while the criminal case was pending. Defense attorney John Theis said Gyulai had been visiting sick relatives and preferred to resolve the case rather than flee.

Prosecutors 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 a lawsuit that Gyulai had been stealing money, according to the feds.

The chef eventually won a $1.4 million judgment against Gyulai and Embeya’s parent company in May 2017, records show.