Former employees of a Bountiful car dealership have filed a class-action lawsuit in Davis County's 2nd District Court, alleging the owner deprived them of commissions and used the money to engage in illegal activity.
The complaint accuses Wesley Johnson, an owner and manager of Menlove Dodge-Toyota, of diverting money that should have gone to employees as compensation, wages, commission or bonuses into a private bank account.
When employees complained that their commissions seemed low, the suit states, Johnson gave them gifts to "boost their morale."
The gifts included Jazz tickets, trips to Wendover, illegal drugs, lunches at a local strip club, after-hours strip shows at the car dealership and sexual favors from prostitutes who, on at least one occasion, were underage, according to the complaint.
If an employee refused the gifts, he was fired or faced retaliation, the document says.
Plaintiffs' attorney Dana Heinzelman said her clients are seeking about $9 million, plus punitive damages. The suit names Johnson and other company shareholders as defendants.
Johnson on Friday called the suit "utterly ridiculous," and said most of his sales staff have been employed at Menlove for at least five years.
"If I'm a liar, if I'm a cheat, if I'm a pimp, if I'm a drug dealer, how in the world would these people work for me for so long?" Johnson asked. "It's garbage. It's ex-employees trying to get money."
The third-generation dealership owner said the suit is nothing more than an attempt to tarnish Menlove's good name.
"It's unfortunate, but I guess that's what happens when you do a nice job and do a good business. You have people coming after your money," Johnson said.
But the plaintiffs' attorney remains confident.
"I guess this case may come down to his word against the word of 140 witnesses," Heinzelman said. "That's something a jury may have to decide."
Eight employees are named as plaintiffs in the suit, but Heinzelman believes there may be as many as 150 current and former employees who sold cars for Menlove during the time in question.
Johnson said the alleged "slush fund" was nothing more than an attempt to equalize commissions paid to sales staff. The plaintiffs were among the highest-paid salespeople at the dealership, he said, and were upset when the fund was established because it decreased their paychecks.
"Its purpose was to equalize the commission structure and the payments going out to the very few salespeople working in the Fresh Start program," Johnson said.
Heinzelman said if the judge ruled the employees did not constitute a "class," the plaintiffs named would continue to pursue their complaint against Johnson.
E-MAIL: mtitze@desnews.com , awelling@desnews.com