Investigation stemming from Costa Academy allegations leads to citations for The Orchards

An investigation that began last spring after several high-school students in a culinary education program at The Orchards accused the owner of inappropriate behavior has resulted in several citations against the Franklin County business.

The Pennsylvania State Police Bureau of Liquor Control Enforcement issued five citations against The Orchards in September:

• Manager of licensed premises was employed by or engaged in another business without board approval

• Furnished and/or gave or permitted such sale, furnishing or giving alcoholic beverages to two minors

• Employed or permitted a minor under 16 years of age to render service in or about the licensed premises

• Conducted an off-premise catered function without an off-premises catering permit

• Failed to clean malt or brewed beverage dispensing system faucets at least once every 14 days

The liquor control bureau's investigation of The Orchards is the only of several to result in any reprimands stemming from allegations that owner Michael Kalathas acted inappropriately with teenage students attending Costa Academy, a culinary arts education program that operated at The Orchards.

What are the Costa Academy allegations?

A viral Facebook post of an email a parent of a Costa Academy student sent to the Chambersburg Area school board first revealed the allegations in mid-May. About a week later, another student shared similar allegations during a school board meeting.

The participating school districts, Chambersburg and Shippensburg, pulled out of the program and Greencastle-Antrim announced it would cancel it planned participation for the coming school year. Several local businesses that had financially supported Costa Academy issued statements ending support for the program.

In a letter issued by a public relations firm, the Kalathas family said all the allegations were false and were made in an attempt to "cancel" Michael Kalathas.

"Michael Kalathas and his family are decades-long restaurateurs, proud residents of the Chambersburg community, and employ over fifty people," the statement began. "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."

First story about Costa Academy scandal: Costa Academy in Chambersburg accused by parents, students of inappropriate conduct

Read more about Costa Academy scandal: Kalathas says Costa Academy allegations wont 'cancel' him; police close investigations

Among other things, students and parents accused Kalathas of asking teenage girls about their sexual relationships with boyfriends. He was accused of taking three girls off the premises for the day without parental permission and listening to sexually charged music and having further inappropriate conversations.

An employee was accused of putting his arms around one girl and inviting her to his house. When the student reported the employee, another worker allegedly threatened the student.

Kalathas was also accused of allowing the teenage students to drink alcohol while at Costa Academy and to work behind a bar.

Children and Youth Services, the Franklin County District Attorney's Office and Chambersburg Police Department were involved in interviewing students. The police department opened at least two investigations, which did not yield any charges against Kalathas.

What happens now that The Orchards has been cited?

First, it is important to know that the Bureau of Liquor Control Enforcement is not the Pennsylvania Liquor Control Board. While the latter only issues and renews liquor licenses, the enforcement agency issues citations against establishments found to be in violation of the state liquor code.

Any establishment that is cited by the Bureau of Liquor Control Enforcement has the opportunity to plead guilty and waive its right to appeal, or it can request a hearing to challenge the citation, according to the bureau's website.

The Office of the Administrative Law Judge adjudicates all liquor law citations.

Hearings are similar to a criminal proceeding, in that both sides have the opportunity to testify under oath and to call witnesses and present evidence. The bureau has the burden of proving a licensee violated the liquor code.

Citations can result in fines of anywhere from less than $100 to tens of thousands, and even the loss of a liquor license.

The result of citations against The Orchards are not yet listed in two applicabale databases, one from the Office of the Administrative Law Judge and the other from the Liqour Control Board.

According to the Liquor Control Board, The Orchards' now has an active license for off-site catering, which it was cited for previously doing without a permit.

Amber South can be reached at [email protected].

This article originally appeared on Chambersburg Public Opinion: Franklin County's The Orchards cited for alcohol violations