Scottsdale restaurant owner admits taking Republic reporter's phones in robbery

A Scottsdale restaurant owner has admitted stealing two cellphones from an Arizona Republic reporter before pushing and shoving her way out of a 2019 interview.

But Tawny Costa could have the robbery charge wiped from her record as part of a deal this month with county prosecutors.

Costa, who operates Italian Parma Roots in Scottsdale, will enter a diversion program, finish a 10-week minimum counseling program and pay $1,239 in restitution.

The robbery charge has a maximum penalty of three years in prison, court records show.

The Arizona Republic has reported on Costa in a series of investigations about the orchestrated failure of eateries from San Diego to Boston. Costa served as the front woman in a former mobster's busted chain of Rascal Flatts restaurants.

More: How the band Rascal Flatts got involved with a mobster in Witness Protection

Questions about the ex-mobster's involvement in Costa's operation are what led to the Dec. 5, 2019, incident at her now-defunct Phoenix restaurant, which also was called Parma Italian Roots.

Republic dining reporter Priscilla Totiyapungprasert said Costa agreed to be recorded during the interview, which she ended abruptly when asked about her personal and professional relationship with a former Mafia soldier named Frank Capri.

Totiyapungprasert said Costa grabbed the cellphones off a table, then pushed and elbowed her before fleeing the restaurant.

Holding Costa accountable is important, Totiyapungprasert said after learning the Maricopa County Attorney's Office offered Costa diversion, also known as deferred prosecution, on the charge.

"Obviously, I didn’t enjoy being assaulted and robbed, but I’m more concerned for the people she has harmed – and could harm in the future," she said. "I’m glad the prosecutor’s office looked into Tawny Costa’s actions so both the general public and the restaurant industry can be aware of who they are doing business with."

Neither Costa nor her lawyer would comment on the case.

Totiyapungprasert said prosecutors told her the diversion agreement requires Costa to stipulate to the crime, but the admission would not be treated as a guilty plea — and would not result in a felony conviction.

Prosecutors said Costa needed to avoid a conviction because it could result in the revocation of her liquor license, Totiyapungprasert said.

The Maricopa County Attorney's Office did not return calls about the case.

For more stories that matter, subscribe to azcentral.com.

Liquor regulators investigating Scottsdale restaurant

Costa's ownership of the restaurant is already in jeopardy.

Arizona liquor regulators, who forced the closure of her Phoenix restaurant in December, are now investigating the "legality of her ownership" of the Scottsdale restaurant.

Investigators with Arizona Department of Liquor Licenses and Control investigation said records indicated Capri had a substantial interest in the Parma restaurants.

They said Costa provided false and misleading information on liquor applications about the true ownership of Parma, the money behind it and her involvement in Rascal Flatts and other failed restaurants.

The findings follow a Republic investigation into Capri and Costa that began in 2015.

Who are Frank Capri and Tawny Costa?

Capri is best known for the epic failure of his Toby Keith's I Love This Bar and Grill restaurant chain, which went under in 2015 amid allegations of fraud and theft. He was also behind the financial ruin of 19 Rascal Flatts restaurant projects that were set up in Costa's name.

Capri's real name is Frank Gioia Jr. He was a "made man" in the notorious Lucchese crime family when he flipped to become a government witness in the 1990s. Authorities said his testimony led to the conviction of more than 70 organized crime figures.

The Republic in 2017 documented Gioia's transformation into Capri through the Federal Witness Protection Program. It showed how he used his new identity to build himself up as an Arizona real estate mogul and restaurateur and then bilked developers out of tens of millions of dollars.

Capri, 53, of Scottsdale, was arrested in 2020 and is being held without bail in an Arizona prison pending trial on fraud, conspiracy and money laundering charges.

The FBI and the U.S. Department of Justice for years have declined to answer questions about Capri or the trail of financial destruction that followed him out of the Witness Protection Program.

Federal authorities have accused Capri of using restaurant licensing deals with Toby Keith and Rascal Flatts as a lure to defraud developers across the country. They said Capri enlisted his mother and other associates to funnel money meant to pay for restaurant construction at malls into their own accounts.

Authorities said they used fraudulent paperwork, fabricated contractors, forged signatures and false notary stamps to convince developers work was progressing on projects when it wasn't.

Federal authorities do not name Costa in the indictment. They refer to her as a Capri "nominee."

Capri and Costa have orchestrated the failure of 65 restaurant projects since 2013 that either closed after opening, were left unfinished or never started; 39 under Capri and 26 under Costa's name, according to a Republic tally.

Costa has described her relationship with Capri differently depending on who is asking the questions.

Capri is father to Costa's two daughters. She initiated calls to The Republic in 2017 posing as other people to gather information for Capri. She later acknowledged the ruse and described herself as Capri's girlfriend and his facilitator.

Costa claimed in 2018 she didn't know about Capri's Mafia past and denied being his girlfriend. At the same time, she was helping Capri to develop Rascal Flatts restaurants.

In 2018, Costa also took over as manager for Capri's last remaining Toby Keith restaurant in Foxborough, Massachusetts. She appeared at a public meeting to assure officials the restaurant was in good hands. It closed in 2019.

Costa describes her role in various ways

Costa admitted in 2019 to fronting the Rascal Flatts restaurants for Capri. In a series of texts to The Republic, Costa said Capri manipulated her into putting her name on corporation and business records for restaurants from Hawaii to Florida.

She claimed she was inexperienced and naive. Costa's sister also had a role in the Rascal Flatts restaurants, records show.

Costa has similarly given various explanations of her ownership roles in now-shuttered restaurants. In publications and in interviews she has described herself as the owner of restaurants, including Parma.

When questions have arisen over closures and lawsuits involving those restaurants, Costa has said she is only a manager or a member of the controlling limited liability company.

Court and police records show Costa has two prior arrests: one in Dallas County, Texas, in 2011; another in Scottsdale in 2015. She pleaded guilty to misdemeanors in both cases.

The felony diversion program is for individuals with a minimal criminal history, according to the county attorney's website. It is designed to save costs associated with prosecution by giving offenders a chance to avoid incarceration through education and therapy.

Prosecution is suspended until completion of the program. Offenders then can have charges dismissed to avoid a felony conviction from showing on their records.

"Reporter Priscilla Totiyapungprasert was doing her job, asking the right questions of a restaurant owner with dubious connections," Greg Burton, Republic executive editor, said.

"Such behavior toward a reporter is never acceptable. We are gratified to learn of Costa's admission of guilt and the restitution for the stolen property."

Robert Anglen investigates consumer issues for The Republic. If you're the victim of fraud, waste or abuse, reach him at robert.anglen@arizonarepublic.com or 602-444-8694. Follow him on Twitter @robertanglen

Help us fight for you and support local journalism. Subscribe to azcentral.com today.

This article originally appeared on Arizona Republic: Tawny Costa admits taking Arizona Republic reporter's phones in robbery