The Select Board on Tuesday voted unanimously to fine the owner of Crust & Co. $1,000 for opening the restaurant that replaced Hillers Pizza, its controversial predecessor, before all inspection requirements were met for its common victualer license.

The board had four options. It could take no action, assess a fine of no more than $1,000, suspend the common victualer (CV) license or revoke the license.

Testimony presented during the hearing prompted a wider discussion about alleged possible connections between Crust & Co. owner Ryan Dion, landlord Paul Mastroianni and Petros “Peter” Sismanis. Sismanis, the disgraced former owner of Hillers Pizza, is serving jail time after being convicted of indecent assault and battery on a person over 14 years of age and two counts of witness intimidation. Crust & Co. took over its location at 77 West Main Street, keeping basically the same menu and several staff members.

On Sept. 9, the board voted 4-1 to issue the CV and entertainment licenses with the caveat that all inspection requirements be met in advance of the pizza shop’s opening. The lone opponent, member Matthew Kizner, told his colleagues that he believed all requirements should be fulfilled before granting the license. Since that time, he has chastised his colleagues for their decision.

Dion agreed to buy the restaurant in late August, and Hillers Pizza abruptly closed on Sept. 1. He changed the color scheme before opening to make a clear physical change to the establishment.

Town Manager Elaine Lazarus explained that her office was informed on Sept. 19 that Crust & Co. had opened two days earlier before the final building inspection occurred. She called Dion, who shut down the business until it was inspected later that morning. He was cleared to open at 11:21 a.m., he said.

Owner explains position

“At no time was it my intent to open with out my common vic license,” Dion told the board. “I was under the impression that I was clear to open and that the license was moving through the necessary channels.”

He classified Sept. 17 as a “soft opening.” The restaurateur cofounded 110 Grill nearly a decade ago and said he has opened over 60 restaurants in seven states over the past decade.

“In hindsight, I recognize I should have had the physical license in hand prior to opening,” said Dion. “And for that, I sincerely apologize.”

The process, he added, was “confusing and unclear at times.”

During the public comment period, questions arose as to why Dion was unfamiliar with the process, given his extensive career in the restaurant industry. There also were allegations that there are financial obligations under the Hillers Pizza name and address. These included a loan from the Small Business Administration and tax liens.

Dion explained that he purchased “the assets of the business,” including furniture and equipment, from Mastroianni. His understanding was that a release was signed by Sismanis’ wife via the landlord and that the former lease had been terminated.

He added that the menu is “99% the same” because the customers enjoy the Greek-style pizza and other items.

Said Dion: “I wasn’t willing to change a menu because of the former owner’s personal issues.”

He repeated that he never met the prior owner or his family members. During the closure, Dion said he paid the employees “out of my own pocket.”

Area resident Alyssa McGinty asked for “transparency” about the business deal. She also questioned “recent financial transactions,” including one on Sept. 17 — the day Crust & Co. opened. She claimed Sismanis pledged “the assets and future revenues of Hillers Pizza” as collateral for a loan.

Added McGinty: “I think it’s obvious that these activities suggest that Hillers Pizza continues to operate in some capacity under Mr. Sismanis.”

McGinty requested that the Select Board investigate the terms and conditions of the purchase to determine if Sismanis is involved in any capacity, “whether written or otherwise.”

Chair Joe Clark asked Lazarus if an investigation was something  the board was allowed to do. She said it was “not within the scope of the hearing” and “typically is not within the board’s purview to investigate those kinds of things.”

Marie Laskowsky, an Ashland resident, further demanded an “independent, third-party review” of business transactions and any alleged arrears Sismanis incurred.

Stressed Laskowsky: “Unmask the financial flow; our community insists upon it.”

Board calls for further discussion

During the board’s deliberations, member Brian Herr said he did not believe the speakers’ remarks could be taken account in determining Dion’s punishment.

“It is frustrating that we still have this quagmire that we’re trying to get past as a community,” he added. “A lot of people have been hurt by what’s going on over there, and this is not helping the process.”

Member Amy Ritterbusch agreed that the situation was “unfortunate.” The new information, she said, “casts a shadow” on the venture.

Vice chair Shahidul Mannan said the concerns raised made him want to “look at the options” for further inquiry with legal counsel to help in “connecting the dots.”

Kizner said this situation would not have happened if the process had not been “rushed.” He called not considering the new information in the punitive process “borderline farcical and potentially gaslighting.” Kizner also called for investigative action.

Clark called the new information “very concerning.” It will be discussed at the next meeting in two weeks.

Board members agreed that the licensing process needs to be tightened. Also, Criminal Offender Record Information (CORI) and Sex Offender Registry Information (SORI) checks need to be performed more diligently for current CV license holders during their annual review in December. This process will be discussed at the next meeting.