A state investigation is underway into a Monmouth County restaurant, which is at the center of controversy from customers, former employees and members of the community.

The Beach Gallery in Keansburg was ordered closed by town officials amid accusations of management failing to pay some employees and not refunding thousands of dollars in now-cancelled weddings less than two weeks away.

All this is happening after it was learned through court documents that three people working there were convicted of sex crimes against children.

“They were in management positions. Some of them had employees who were under 18,” said Matt Kitchen, a father of three from Keansburg.

According to court records, Beach Gallery employees Michael Palacios, John Schulte, and Derick Jerinsky were all convicted of child sex crimes and spent time together in a correctional facility during the early 2010s.

The restaurant sits directly across the street from the Keansburg Amusement Park. Word spread quickly of the accusations online, while at the same time, several former employees accused management of not paying them wages they were owed.

According to the Keansburg borough manager, the venue’s utilities were shut off, forcing the town to close the business. Two wedding parties scheduled for next Saturday, Oct. 11, were also cancelled, but records show Schulte requested payment for those events as recently as this past Saturday.

The borough manager confirmed to News 12 that Keansburg police and the state Division of Alcohol Beverage Control have launched an investigation into the business following these accusations.

“They would say like, ‘Hey is John here. They owe so much money for the produce,’ and, ‘They owe so much money to the garbage company.’ So then it kind of added up to me. This is why I'm not getting paid, he owes so much more to people too,” said Haley Hopkins, a former employee who worked at the restaurant from its opening in 2024 until that summer.

The Beach Gallery owner is responding online, posting a lengthy rebuttal on her website.

“I believe deeply that if someone has paid their debt to society, they deserve the opportunity to move on and build a new, productive life. The Beach Gallery was designed to be an example of a place that grants that chance, and I view this commitment to opportunity as a source of pride,” the owner wrote.

This is a developing story. Stay with News 12 for updates.