Kalathas says Costa Academy allegations wont 'cancel' him; police close investigations
A Franklin County restaurateur accused of behaving inappropriately with students in his culinary arts program said the allegations are false and were made in an attempt to "cancel" him and his business.
According to a statement provided by a public relations representative, Michael Kalathas, owner of The Orchards restaurant in Chambersburg, and his family said the allegations against him have hurt not just Costa Academy, but the community as a whole.
"Michael Kalathas and his family are decades-long restaurateurs, proud residents of the Chambersburg community, and employ over fifty people. He has devoted his life to his employees, friends, community, and family. In the blink of an eye, false allegations from a person he never met are attempting to cancel him. Michael Kalathas’s decades of commitment and love for the Chambersburg community cannot and will not be cancelled.
"The Kalathas family will never allow false accusations to cancel a fine-dining restaurant, banquet facility, sports bar, teaching academy, years of non-profit work, decades of charitable contributions, and restaurant consulting work, and decades of service for many community boards and organizations."
Chambersburg Police Department has closed three cases in relation to the allegations with no charges, according to Chief Ron Camacho.
In late May, police were investigating allegations that underage Costa Academy students were permitted to drink at The Orchards and another incident that Sgt. Matthew Bietsch said he could not disclose. Camacho confirmed Monday night that both cases are closed and no charges will be filed.
Those investigations followed an earlier one in which three students participated in forensic interviews with Franklin County Children and Youth officials. That was triggered by a Shippensburg Area School District official calling Pennsylvania's ChildLine to report that an Orchards employee touched a student.
The Bureau of Liquor Control Enforcement, which is part of Pennsylvania State Police, continues to investigate, according to a representative.
Chambersburg Area School District also had its own investigation into alleged incidents at Costa Academy. District spokesperson Brian Miller said there was no "information to share at this time."
CASD played a role in opening Costa Academy and was the only participating district until Shippensburg joined this past school year. CASD paused its participation pending the result of its investigation. Shippensburg Superintendent Bill August pulled his district totally, including for next year, when the allegations came to light.
Menno Haven and WellSpan Health, which both made financial contributions to Costa Academy, announced they were ending their support for the program.
Read the first story: Costa Academy in Chambersburg accused by parents, students of inappropriate conduct
What are the allegations against Kalathas and Costa Academy?
Costa Academy was established at The Orchards in 2016 to fill a need for culinary education in the county for high-school students. Last week, the Costa Academy sign was removed from in front of the restaurant.
That move came less than a month after a parent of a Costa Academy student accused Kalathas of inappropriate comments and actions with students in a Facebook post that went viral. The text was copied from two emails she sent to CASD administrators and school board members, asking them to take action.
Stephanie Eberly, whose daughter participated in Costa Academy as a sophomore this spring before exiting the program early in April, claimed Kalathas referred to himself as a "pimp" and discussed smoking marijuana while introducing himself to students; touched her daughter's lower back and her hair, and asked if she had sex with her boyfriend; and took three female students off the restaurant property in his personal vehicle without parental approval, then lied about their whereabouts when they did not return in time for dismissal.
Eberly also described an incident in which an employee at The Orchards put his arms around a female student and invited her to his house for "first aid" for an injury; this is the incident that led to the ChildLine report. When this student reported the incident to authorities, another employee allegedly assaulted her as payback. Eberly also claimed students were directed to move cases of beer at a local event and to handle bottles of alcohol behind a bar at the restaurant.
A week later, a student spoke at a Chambersburg school board meeting and described the discomfort she felt with questions Kalathas asked and the music he played while she and two other girls were with him to visit a bank and go to lunch. She also said she was the one who an employee touched and invited to his home and described students drinking while at Costa Academy.
Kalathas "strenuously denies any wrongdoing and considers these allegations defamatory," according to the statement.
"Not only does Mr. Kalathas deny them, but law enforcement agencies have closed their investigation into these false allegations, saying they found nothing actionable. At least two social media sites have already taken down the false accounts," it continues.
One of the "social media sites" is Tri-State Alert, a website run by local radio station NewsTalk 103.7 FM, according to Jeremy Neuhart, a PR representative for the Kalathas family. He could not confirm the other site with the Kalathas family before this story was published; however, like Tri-State Alert, the local news site Franklin County Free Press also removed a post about the allegations that appeared to be based solely on the Facebook post.
It is not clear why the Costa Academy sign was taken down at The Orchards. Neuhart said Tuesday morning he was waiting to hear back from his clients.
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Mike Kalathas in 2019:: Chef and owner of Franklin County staple The Orchards named Business Person of the Year
Political connections raise questions
More than two weeks before the allegations went public in a Shippensburg community group on Facebook, Eberly said she got a call from Vishal Jetnarayan, a Costa Academy board member and friend of Kalathas.
She said he tried to persuade her that it was all a misunderstanding and that Kalathas had only been trying to reach students at their level. She said she was later told by CASD officials that Jetnarayan asked them not to call police about the case.
Both Kalathas and Jetnarayan were central to state Sen. Doug Mastriano's 2022 failed gubernatorial run. Mastriano celebrated his primary night victory at The Orchards, and the restaurant was the site of a September rally for Mastriano with Donald Trump Jr.
Jetnarayan, who served as Mastriano's campaign manager, received more than $153,000 in campaign spending from Mastriano in 2022 for himself and his business entities. Campaign finance records show payments dating to 2018.
It is unclear if Jetnarayan remains affiliated with Mastriano. At one time, his LinkedIn profile noted he was Mastriano's campaign manager, according to a September 2022 report from public broadcasting station WHYY, but it did not as of June 2.
It was not immediately clear whether Jetnarayan remained a member of the Costa Academy board because an updated list of board members is not posted on the academy website.
Jetnarayan and Mastriano never responded to prior requests for comment about this reporting.
Read the full statement from the Kalathas family
Michael Kalathas and his family are decades-long restaurateurs, proud residents of the Chambersburg community, and employ over fifty people. He has devoted his life to his employees, friends, community, and family. In the blink of an eye, false allegations from a person he never met are attempting to cancel him. Michael Kalathas’s decades of commitment and love for the Chambersburg community cannot and will not be cancelled.
The Kalathas family will never allow false accusations to cancel a fine-dining restaurant, banquet facility, sports bar, teaching academy, years of non-profit work, decades of charitable contributions, and restaurant consulting work, and decades of service for many community boards and organizations.
Michael Kalathas strenuously denies any wrongdoing and considers these allegations defamatory. Not only does Mr. Kalathas deny them, but law enforcement agencies have closed their investigation into these false allegations, saying they found nothing actionable. At least two social media sites have already taken down the false accounts.
Like so many other bogus accusations, this began on social media and then took hold in the rumor mill.
The Kalathas family began Costa Academy as a tuition-free opportunity for high school students to gain real-world experience in the restaurant industry, a program that was, until these false accusations, providing important training for the young people of this region. In addition to providing training, the Academy became an important resource for vulnerable members of the community by providing free meals as well as training for future entrepreneurs.
The false and defamatory accusations have damaged that effort and, by extension, the Chambersburg community. Mr. Kalathas, his family, and employees are committed to providing a safe place of work and training.
The Kalathas family stands together strong with the Chambersburg community.
Amber South can be reached at asouth@publicopinionnews.com.
This article originally appeared on Chambersburg Public Opinion: Michael Kalathas: 'Bogus' Costa Academy allegations won't 'cancel' me
