Judge keeps Oakes Farms lawsuit against ex-CEO in federal court

Mega grocer Francis “Alfie” Oakes III lost a bid to return a lawsuit against his former CEO to state court after a federal judge ruled the case will remain in U.S. District Court. 

U.S. District Judge Sheri Polster Chappell denied Oakes’ motion to remand his lawsuit against Steven A. Veneziano Jr., 37, to Collier Circuit Court, concluding the case properly belongs in federal court after Veneziano moved to California. Veneziano, who served as CEO of Oakes Farms, worked for Oakes since 2013, including as president and manager and as vice president of South Florida Produce, until pleading guilty to federal fraud charges last August. 

“The court is convinced that the Venezianos changed their domicile from Florida to California based on their physical presence in California and their intent to remain there indefinitely,” Polster Chappell wrote in her five-page ruling. “None of the facts plaintiffs offer contradict the Venezianos’ representations, nor do they show an intent to return to Florida.” 

The ruling centers on “diversity jurisdiction,” which allows federal courts to hear civil cases between citizens of different states. The law requires “complete diversity,” meaning no plaintiff can share the same state of citizenship as any defendant. Oakes argued Veneziano remained a Florida resident because he still owned property and maintained ties in the state. 

The judge disagreed, citing evidence that Veneziano and his wife became California citizens in late 2024, purchased a home there in December 2024, enrolled their children in California schools and obtained California driver’s licenses. The ruling also noted that Veneziano is employed in California, opened a bank account there, filed his 2024 federal tax return there and registered his vehicle there. 

Veneziano said he “moved across the country” because he “feared for his life and his family’s safety” due to his cooperation with the federal government in a criminal fraud investigation involving Oakes, his employees and others. Eight people have cooperated and pleaded guilty. Court records cited Oakes’ alleged criminal role by name for the first time in Veneziano’s response. His civil attorney, Susan Warner, said federal authorities were kept informed of his location at all times. 

Oakes Farms Inc., Oakes Farm OP (Operating Partners) LLC and South Florida LLC — entities owned by Oakes — filed the lawsuit Oct. 31 against Veneziano and two of his dissolved companies, Veneziano Farms LLC and Veneziano Property Management LLC. 

The complaint alleges Veneziano stole $12.5 million from 2022 through November 2024 to fund a lavish lifestyle and gambling habit. It accuses him of fraud, conversion, money laundering, breach of fiduciary duty and unjust enrichment and seeks the return of all illegally gained assets or traceable proceeds. 

Veneziano’s criminal attorney, Nicole Hughes Waid, a former federal prosecutor, has called the lawsuit frivolous, saying it is intended to “promote a false narrative to the public that Mr. Veneziano stole from Oakes Farms. Let me be clear: Mr. Veneziano did not steal from Oakes Farms, he stole for Oakes Farms.” 

This month, Veneziano asked the judge to dismiss five of the six claims, which would leave only breach of fiduciary duty. The judge has not yet ruled on that motion. 

Oakes’ attorney, Joseph Davidow, has declined to comment on the pending case but has said the “fraud and breach of trust came as a shock to the company,” which hopes to recover the funds and continue serving Southwest Florida.