The Ritz Theater and the Fallout of a Partnership Gone Wrong

The Ritz Theater in Scranton, PA

by Chris Peterson, OnStage Blog Founder

Scranton’s Ritz Theater is no stranger to drama—but the latest plot twist isn’t happening on stage.

Earlier this year, the historic downtown venue—known for its nostalgic charm and promising future—became the center of a real-life financial scandal. At the heart of it is James J. Olecki, former business manager and co-owner of the theater, now accused of embezzling nearly $75,000 in company funds. And while the dollar amount is staggering, the story unfolding is about much more than money—it’s about trust, vision, and what happens when partnerships fall apart in the public eye.

A Downtown Dream

Let’s rewind for a moment.

In late 2023, James Olecki teamed up with Scranton native and entrepreneur Joshua Balz to purchase and relaunch the Ritz Theater. Olecki had just returned from 25 years in New York City. He brought with him big ideas and a passion for revitalizing Scranton’s arts scene. Balz, already invested in shaping Scranton’s downtown through ventures like Strange and Unusual and Noir Dark Spirits, shared that energy.

Together, they set out to transform the Ritz into something more than a theater—an arts and business destination where live performances, events, and creativity could thrive. On paper, it was a dream collaboration. But just months later, it all started to unravel.

A Quiet Exit, Then Loud Accusations

Behind the scenes, concerns about money began to bubble up. Balz and other team members reportedly noticed discrepancies in the books—unapproved transactions, ATM withdrawals, Cash App payments. The spending, allegedly from a company-issued debit card, added up to just under $75,000. According to police documents, several payments were labeled with names like “Molly” and “Diamond”—and none of it was backed up by receipts or approvals.

When Olecki was asked to explain the charges, he went silent.

On January 27, 2025, he was officially let go. A week later, Balz filed a police report. And by late March, Olecki turned himself in to authorities and was formally charged with felony theft. He’s currently out on $20,000 unsecured bail, with a preliminary hearing scheduled for April 9.

Two Sides to Every Story

Of course, no scandal is complete without a counter-narrative.

Olecki, through his attorney, claims this isn’t theft—it’s a bad business breakup. His lawyer has called it a “smear campaign” and says Balz is using law enforcement as leverage in what should be a civil dispute. They’re now threatening a defamation lawsuit, accusing Balz of damaging Olecki’s reputation in the community and exaggerating the financial fallout.

The courtroom will ultimately sort out the facts. But regardless of who’s right, the damage has already been done.

What This Means for the Ritz

James Olecki

The Ritz Theater is now in a delicate position. Beyond the headlines and legal back-and-forth is a beloved institution trying to rebuild—again.

This kind of disruption can be deeply destabilizing, especially for a historic venue that relies on public trust, private investment, and community engagement to succeed. Arts spaces like the Ritz live and die by momentum, and when that momentum is interrupted by scandal, it's hard to get it back.

Balz and his team now face the challenge of not just moving forward—but convincing the public and potential partners that the theater’s future is still bright. That trust will need to be re-earned, brick by brick.

A Larger Conversation

Zooming out, the Ritz situation speaks to a larger challenge facing revitalization projects across the country. When old spaces are given new life, it takes more than just funding and vision. It takes leadership that’s transparent, accountable, and collaborative. And when things go wrong, as they inevitably do in creative ventures, the way people respond—ethically and operationally—can make all the difference.

So what happens next?

For now, we wait. For the court hearing. For more details. And for the Ritz to find its footing again.

Because at the end of the day, Scranton deserves a thriving arts hub. And the people who believe in the Ritz—its past and its future—deserve to see this chapter close with integrity.