The Brian Bemis Automotive Group is suing a former executive who, police say, might have stolen more than $1 million from the company during the 15-plus years he worked there.
The three-count lawsuit filed last month in DeKalb County court alleges David R. Painter stole more than $1.5 million from the Brian Bemis Automotive Group, which operates dealerships in DeKalb, Oregon and Sycamore, between 1993 and 2009.
Painter, 47, of the 1300 block of Windfield Drive in Sycamore, is also facing criminal charges; he was arrested Friday and charged with theft over $500,000.
Bail was set Saturday at $500,000 for Painter; he posted $50,000 bond and was released from the county jail later that day. If convicted of theft, Painter could be sentenced to up to 15 years in prison.
The civil lawsuit was filed after Bemis executives discovered in January that Painter had stolen money from the company, according to the complaint. Executives questioned Painter after they found some anomalies in the company's finances, said Sean Smith, attorney for Brian Bemis.
"When Mr. Painter was questioned about that, he disclosed some of what he had done," Smith said. "That prompted them to look a little more deeply into the matters."
Smith declined to provide additional details about the anomalies and said he was not present when Painter talked to company executives.
Painter's employment with Bemis ended soon after the January discovery, Smith said. Painter had held numerous positions within the company, including as chief financial officer, and most recently, as chief operating officer.
The lawsuit also accuses Painter of fraud for concealing that he had stolen the money.
Also named in the civil lawsuit is Marlene C. Painter, 48, the estranged wife of David Painter. The complaint alleges that she either knew or should have known if her husband had taken money and that she was "unlawfully in possession of property" belonging to Bemis and the company.
Marlene Painter was named in the lawsuit after "careful consideration" because "presumably she was the beneficiary of" the money her husband had taken, Smith said.
It's a charge she denies, said attorney Richard Larson, who is representing Marlene Painter.
"She didn't know anything about this," he said. "She had no knowledge of any wrongdoing on the part of her husband. I'm not saying there was any wrongdoing, but she certainly wasn't aware of anything."
Larson said if the civil case continues, he will file paperwork denying the allegations laid out in the complaint.
Marlene Painter filed Feb. 4 for divorce from her husband, citing irreconcilable differences, according to court documents.
DeKalb Police Lt. Gary Spangler said authorities are still investigating the criminal portion of the case. Painter wrote checks to himself in the amount of $1.35 million, according to documents in the criminal case. He stole $630,000 between 2006 and 2008, police state in documents.
The threshold to charge someone with Class 1 felony theft is $500,000, he said, and police believe they have evidence of that. The actual amount Painter is alleged to have stolen will most likely be higher, Spangler said.
"We have a lot of records to sift through," he added. "We just seized some things from his house, and we have to send off a subpoena and search warrants for other things. These cases are quite lengthy."
James Buck, who is representing David Painter in the civil lawsuit, declined to comment because of the pending criminal investigation. Hugh Toner, who is representing David Painter on the criminal charges, did not immediately return a phone message left Monday afternoon.
Through his lawyer, Brian Bemis declined to comment.
David Painter is next due in court on his criminal charges April 1. The next court date for the civil case is Aug. 17, according to court records.