From cultural icon to courtroom: the alleged RD$40 million Barra Payán embezzlement case

Santo Domingo.- Founded on August 10, 1956, by Juan Frías Payán in Santo Domingo, Barra Payán became an icon of Dominican culture and gastronomy, renowned for its sandwiches and milkshakes. Today, it stands at the center of a family legal dispute involving an alleged fraud of nearly RD$40 million, according to the Public Prosecutor’s Office.

How the alleged embezzlement scheme operated

Prosecutors allege that between 2019 and 2022, former administrators and partners Marcos Antonio Frías García, Juan Ismael Frías García, and Dagoberto Cabrera carried out an embezzlement scheme at Comercial Barra Payán, SRL by withholding portions of daily sales instead of depositing the full amounts into company bank accounts. The practice allegedly created significant discrepancies between internal sales records and actual deposits.

According to the case file, the systematic diversion of cash caused losses totaling RD$39,784,661.18, as established by a forensic audit endorsed by the Institute of Certified Public Accountants of the Dominican Republic (ICPARD). Prosecutors also allege the misuse of company funds for personal expenses and the arrangement of unauthorized loans, actions that allegedly placed the company at risk of insolvency.

The alleged misconduct affected partners Juan Santiago Frías Paulino, Juan Abraham Frías Paulino, Yeimy Cantalicia Frías Paulino, and Juan Carlos Frías Beltrán, who are listed as victims. The acts have been classified as violations of Article 408 of the Dominican Penal Code, relating to aggravated breach of trust and disloyal administration.

The defendants were arrested on February 5, 2026, and prosecutors requested coercive measures including a RD$1 million financial guarantee, travel restrictions, and periodic court appearances. However, the hearing was postponed indefinitely after the defense formally recused Judge Fátima Veloz, alleging bias. The matter was referred to the Presidency of the Court of Appeals of the National District, which will determine whether the challenge has merit.