Carriage Inc., a Millersburg, Ind.-based manufacturer of towable RVs, has sued its former CEO, Dean R. Johnson, demanding that he repay $374,604 in company funds that Carriage claims he converted “for his personal use or wasted.”
The civil suit was filed in Kosciusko Circuit Court in Warsaw, Ind.
Johnson, a resident of Syracuse, Ind., left Carriage during June. Since Johnson’s departure, Glenn Cushman, head of the investor group that bought Carriage in 1999, has moved from Phoenix, Ariz., to northern Indiana to run Carriage on a day-to-day basis.
During an interview in June, Cushman said the other Carriage investors and the company’s lenders wanted him to get more involved in Carriage to make sure “funds are watched carefully and applied where they need to be applied.”
In the court document, Carriage states that Johnson cashed six checks for a total of $254,604 that were payable either to Carriage or to Johnson, which Johnson “converted to his personal use, or used for purposes not in the furtherance of Carriage’s business, and, therefore, a waste of its corporate assets.”
The company also claims that Johnson withdrew $120,000 from Carriage’s line of credit at LaSalle Bank in Chicago and that he also used that money either for “personal benefit or wasted this corporate asset.”
Johnson has until Aug. 8 to respond to the lawsuit.