Former Hennessey's Honcho Arrested

The former chief financial officer of Hennessey's Inc., which operates a restaurant in Dana Point and has nearly a dozen others in the Southland, was arrested Thursday on suspicion of embezzling $1.1 million from the company, authorities said.

James Cram, 54, of Rancho Palos Verdes, was arrested by detectives in Redondo Beach, where the restaurant chain is headquartered, according to  Sgt. Shawn Freeman of the Redondo Beach Police Department.

Authorities said Cram embezzled the money from Hennessey's Inc. and its owners, Paul and Jennifer Hennessey, when he worked there from 2006 to 2010.

When Cram left his job as CFO, the company performed an audit and "discovered discrepancies" in the books, police said.

"Mr. Cram was basically writing checks to himself or his own creditors … signing Mr. Hennessey's name to it," Freeman said.

The investigation took more than a year to complete, Freeman said.

Cram was arrested on suspicion of 19 felony counts, including grand theft, money laundering and tax evasion, according to the statement.

He was being held at the on $500,000 bail, Freeman said.