Bowdeya Tweh

btweh@enquirer.com

Seven former Tiger Dumpling employees are suing the company claiming that its owner shortchanged them on pay for work performed at a Newport warehouse.

Meanwhile, The Enquirer has found a handful of judgments for companies that say they're owed money from owner James Hunter Hebert, ranging from a few hundred dollars to tens of thousands of dollars. The state of Ohio is also one of Hebert's creditors.

The lawsuit filed Tuesday in U.S. District Court in Covington said the employees worked in the warehouse preparing Asian-style dumplings, which were sold at the Clifton Heights restaurant near University of Cincinnati's campus. Lawyers for the plaintiffs allege that state and federal labor and wage rules were violated and claimed the workers went about a month without pay in March. Previous attempts to recover money had been unsuccessful, attorneys said, and workers also want to recover unpaid overtime during weeks they worked more than 40 hours in a week.

Plaintiffs who worked in the commissary are Lidia Domingo, Angela Domingo, Maria Domingo, Enrique Agustin, Luis Macario, Felipe Cinto and Juan Mendoza. Named as defendants in the lawsuit are Dumpling Man LLC, Tiger Dumpling LLC and Hebert. The lawsuit seeks a jury trial in addition to lost wages and damages.

When reached by phone Wednesday, Hebert said his lawyer advised him to not speak to the media and referred further questions to the lawyer, Jack Defevers. Hebert has yet to be served with the federal lawsuit so he couldn't provide specific comment about it, said Defevers, adding that he had only been recently retained by Hebert.

"We are confident there is no merit to any claims that former Tiger Dumpling employees were not paid wages they earned," Defevers said in a statement. "We will, of course, give the matter the serious attention it deserves as the process unfolds."

The lawsuit comes as Tiger Dumpling is working to expand the reach of its brand. The company wants to locate a restaurant at The Banks after closing its Clifton Heights location earlier this year. Separately, Kroger announced a deal Monday to have Tiger Dumpling operate food carts at the company’s Oakley Kroger Marketplace and Harpers Point Kroger in Symmes Township.

“These employees worked hard for Tiger Dumpling and cooked the very dumplings that have allowed Tiger Dumpling to capitalize on opportunities to open at The Banks and partner with Kroger. They are rightfully owed compensation under the law,” said Clement Tsao, attorney for the seven former Tiger Dumpling warehouse employees.

The seven workers quit at different times in March and April after not being paid, according to their attorney.

Backed by investors Elias Leisring and Michael Kou, Hebert opened the Tiger Dumpling restaurant at 249 Calhoun St., across the street from UC's main campus, in 2015.

Leisring, who owns Eli's BBQ, told The Enquirer that he and Kou have not been affiliated with Tiger Dumpling since early 2015.

After signing a two-year lease for the 525-square-foot space on Calhoun, Tiger Dumpling reached a deal with its landlord to end the agreement early. The restaurant closed in April.

In June, Banks officials said Tiger Dumpling would open a new restaurant in summer or fall 2016. The new Tiger Dumpling would be located on East Freedom Way next to the drinkware retailer Tervis. But as of this week, there hasn't been much interior construction at the proposed location.

When reached Wednesday, Jon Reischel, a spokesman for the Downtown Cincinnati riverfront development, said Tiger Dumpling is now slated to open in the first quarter of 2017. Reischel said Hebert wants to develop a new prototype with the location at The Banks and higher costs on construction and design changed the project's timing.

The Oakley food cart at Kroger would be open by the end of October, the Cincinnati-based grocery store giant said. Kroger regional official Jeff Talbot said Tiger Dumpling has achieved a "cult-like following" and presents an opportunity to expand the company's prepared food options.

“This is an incredible opportunity for Tiger Dumpling,” Hebert said in a statement. "We are honored to have the support of such an innovative retailer as Kroger, and look forward to a long and successful partnership that will enable us to bring Tiger Dumpling’s delicious menu to new audiences.”

Landing a deal with one of the nation's largest grocer could help push Tiger Dumpling into being a national brand.

The Enquirer has requested comment from officials at Kroger about the allegations.

"We have entered into some business relationships with some very sophisticated parties, parties that have vast resources to do due diligence with people they enter into business arrangements with," Defevers said. "I think it's fair to say everyone involved in these relationships is happy to be doing business with each other."

The federal lawsuit filed in Kentucky isn't the only legal issues that Tiger Dumpling and its owner are facing.

Zachary Hoppe, the former general manager of the Clifton Heights location, said there are at least 15 employees who are owed money from Hebert.

“Our paychecks were always three to four days late on average and we were paid bi-weekly,” Hoppe said. “And there was always a story that was believable enough but it was always a story every single payday.”

By missing out on pay, Hoppe said former employees have gone through issues such as being served eviction notices, having utilities shut off, and their credit ruined.

“I don’t want him to get away with this,” Hoppe said.

Cory Harbatkin, a 19-year-old University of Cincinnati sophomore, said he's owed about $600 from paychecks Hebert promised but never provided.

Harbatkin said the first two paychecks he received earlier this year while working at Tiger Dumpling bounced. Hebert eventually paid him in cash, but not before making accusations about him fraudulently trying to cash multiple checks. A few weeks later, another paycheck bounced. Eventually, the restaurant closed.

"We would have lines out the door," Harbatkin said. "There was tons of money in the register. It had to have been doing good."

Harbatkin said he and his mom Debbie were filing a police report about the missing money when they learned about a new location opening at The Banks. The mother and son wondered the same thing: “How could they do that?”

“This actually affected people,” Harbatkin said.

In other litigation, Ritessh Sen of Symmes Township obtained a judgment of $5,250 plus interest against Hebert in March for missed loan payments. The state of Ohio obtained a $230 judgment against the company in April for unpaid workers' compensation premiums. An eviction was filed against Hebert in April for a condominium he rented on Dunlap Street in Over-the-Rhine. Hebert's landlord, Neil Marquardt, claimed $7,950 of back rent was owed, according to Hamilton County court filings.

Finally, lenders Premier Capital Funding and Arch Capital Funding won judgments totaling more than $27,000 combined from Hebert's company, according to court filings in Westchester County, New York. Both companies had agreements to buy the restaurant's future receivables.

Such a financing method is used by businesses trying to obtain working capital. Under these arrangements, sometimes called "factoring agreements," a business gives up the right to get paid by its original customer; in exchange, the factoring company gives the company an immediate cash payment. The customer still owes the amount due, but now they have to pay the factoring company.