MODESTO— A longtime financial executive at one of the nation’s largest frozen vegetable producers is accused of orchestrating a multimillion-dollar embezzlement scheme that allegedly bankrolled luxury cars, jewelry, designer clothes and real estate, according to a civil lawsuit filed in Stanislaus County Superior Court.
Cebro Frozen Foods Inc. has sued former Chief Financial Officer Robert Fantazia, his wife Cheryl, and sons Alexander and Joshua, alleging the family benefited from more than $4.3 million stolen from the company. Alexander previously worked for Cebro, while Joshua is believed to be incarcerated.
The defendants are represented by prominent Modesto attorney Adam Stewart, who could not be reached for comment.
Founded in 1993 in Newman, Cebro is a U.S.-based global supplier of farm-to-frozen vegetables. The grower-owned company is led by CEO Patrick Cerutti, who succeeded his late father. Its affiliated entities include Cerutti Bros. Trucking Inc. and Cerutti Bros. Inc.
Fantazia joined Cebro in the late 1980s and became CFO in the late 1990s, later serving as a director overseeing all financial operations. For years, Cerutti questioned Fantazia about declining profits despite strong sales. “Over the past few years Cebro has not been as profitable as expected based on sales, revenue and operations,” the lawsuit states. “When the CEO would discuss the situation with Robert and question him about where the cash flow was going, Robert would provide assurances it would all work out, or report that things were fine.”
The company had invested in construction projects, with Fantazia promising profits would rebound once they were complete. “However, after construction was completed, the cash flow didn’t improve and the financial figures didn’t seem to be correct,” the lawsuit says.
Employees began noticing Fantazia’s increasingly lavish lifestyle — new vehicles, multiple homes, vacations abroad, and donations to local foundations and schools — far beyond what his salary could support. “He had new vehicles, two homes, took lavish vacations and an extensive collection of jewels and designer clothes,” the lawsuit alleges. “Many questioned how he could live such a lifestyle.”
Earlier this year, a new outside accounting firm requested records from Fantazia. When Cerutti reviewed the books, he said “something was definitely off.” An internal review revealed Fantazia had sole access to online accounts and used company funds to pay personal debts.
The lawsuit details payments including:
- American Express: $1,580,491.62
- Wells Fargo: $995,108.68
- Chase Card Services: $812,205.07
- Citi Cards: $540,659.76
- Barclays Bank: $325,748.78
- BMW Financial: $44,656.29, tied to a vehicle driven by Cheryl Fantazia
- GM Financial: amounts not yet determined, believed linked to Fantazia’s truck
The company alleges Cebro funds financed a Rivian, Chevy Silverado, BMW 650, GMC Yukon, luxury luggage, diamond jewelry, Christian Louboutin shoes, designer gowns and handbags, and properties on Ralston Court and Northfield Court in Modesto. Alexander allegedly told employees he used his father’s credit card for the down payment on his Chevy pickup, while other purchases included a Rivian electric truck.
The lawsuit also claims company funds were used as the Fantazias sought custody of Joshua’s daughter and updated their estate plans.
Fantazia allegedly discouraged safeguards that might have prevented the theft. The affiliated Cerutti companies use two-factor authentication to flag suspicious payments, but Fantazia “indicated it was not necessary to have this safeguard and actively discouraged its use,” the lawsuit says.
Fantazia was arrested by the Stanislaus County Sheriff’s Office the day before Thanksgiving but released last week without the district attorney’s office filing charges at that time.
Cerutti stated in the lawsuit he made numerous changes to offset costs and increase profits, but “despite these changes, the company did not realize cash on hand where the CEO expected increases.” The internal review ultimately uncovered “the theft and elaborate scheme Robert had been doing for years.”
