Editor's note: This Shark does not usually get involved with business squabbles. Exception: When somebody tries to guardianize 81 year old Al Piemonte, one of the shrewdest businessmen in Chicago. Readers, check out the highlighted text in this article. Lucius Verenus, Schoolmaster, ProbateSharks.com
Partner: Al Piemonte using dealership as 'personal piggy bank'
Al Piemonte Ford dealership on North Av. and 25th Av. in Melrose Park. (Chuck Berman/Chicago Tribune) (Chuck Berman / Chicago Tribune / March 20, 2014)
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TV pitchman Al Piemonte is using his Ford dealership as a “personal piggy bank” to uphold his family’s lifestyle, his business partner alleges in a new lawsuit.
In court documents filed earlier this month, Todd O’Reilly — who says he owns 44 percent of Al Piemonte Ford in Melrose Park — accused Piemonte and his third wife, Rosanna, of gross mismanagement. He contends the couple is trying to freeze him out of the business so Rosanna’s son can run it eventually.
The dealership has ranked among the area’s best-known for nearly three decades, owing in part to the ubiquitous TV commercials starring Piemonte and his promises of hassle-free car buying.
The successful business currently is “sitting on more than $6 million in cash,” according to the lawsuit. Those reserves have been used to help pay Piemonte’s family expenses, including the cell phone bill for his adult daughter and a $110,000 Mercedes for his second wife, according to the lawsuit.
Piemonte, 82, has directed the dealership to pay his personal credit card bills and provide health insurance to several relatives who have never worked for the business, the complaint alleges. He also used company money to pay for repairs to a family member’s Cadillac Escalade, even though the relative lives out of state and has no affiliation with the business, the lawsuit states.
And he recently charged the business $490 for pest-control treatments at both his home and his sister-in-law’s house, the complaint states.
“Over the years, O’Reilly has observed Piemonte use (the business’) money to pay for various personal expenses including clothes, massages, country club memberships, and the costs associated with remodeling his condo,” the lawsuit reads. “Piemonte has likewise used (the business’) dollars to pay for Christmas gifts for friends and family … Some of those gifts were more lavish than the others, such as a piece of jewelry he purchased for Rosanna.”
O’Reilly wants Piemonte to repay any personal expenses footed by the dealership, according to the lawsuit. He is also asking the court to appoint a custodian to oversee the business.
Cook County Judge Neil Cohen denied O’Reilly’s emergency petition for a guardian earlier this week.
Attorneys for both O’Reilly and the Piemontes declined comment on the lawsuit.
Piemonte also owns Nissan and Chrysler dealerships in the Chicago area. O’Reilly does not own stock in those locations, according to the lawsuit.
O’Reilly’s original partnership agreement with Piemonte allows him to purchase Piemonte’s majority share upon his death for book value, the complaint states.
After a series of hospitalizations and medical procedures in recent years, Piemonte began to rethink the arrangement and approached O’Reilly at Rosanna Piemonte’s urging to discuss modifying the terms of the partnership, according to the lawsuit.
The complaint states that when O’Reilly refused, the couple began to ostracize him from the business by excluding him from meetings and barring him from the sales floor and service department.
The couple wants Rosanna Piemonte’s son to take over the business instead of selling Al Piemonte’s shares to O’Reilly, the lawsuit states. O’Reilly says in court documents that he has no interest in parting with his shares and has filed the lawsuit to protect his financial stake in the company.
“(The dealership) is being grossly mismanaged by Piemonte and Rosanna,” the complaint states. “Piemonte has systematically controlled and used the corporation for the benefit of him and his family members...In doing so, Piemonte has been using (the dealership) as his personal piggy bank.”
sstclair@tribune.com
twitter: @stacystclair
In court documents filed earlier this month, Todd O’Reilly — who says he owns 44 percent of Al Piemonte Ford in Melrose Park — accused Piemonte and his third wife, Rosanna, of gross mismanagement. He contends the couple is trying to freeze him out of the business so Rosanna’s son can run it eventually.
The dealership has ranked among the area’s best-known for nearly three decades, owing in part to the ubiquitous TV commercials starring Piemonte and his promises of hassle-free car buying.
The successful business currently is “sitting on more than $6 million in cash,” according to the lawsuit. Those reserves have been used to help pay Piemonte’s family expenses, including the cell phone bill for his adult daughter and a $110,000 Mercedes for his second wife, according to the lawsuit.
Piemonte, 82, has directed the dealership to pay his personal credit card bills and provide health insurance to several relatives who have never worked for the business, the complaint alleges. He also used company money to pay for repairs to a family member’s Cadillac Escalade, even though the relative lives out of state and has no affiliation with the business, the lawsuit states.
And he recently charged the business $490 for pest-control treatments at both his home and his sister-in-law’s house, the complaint states.
“Over the years, O’Reilly has observed Piemonte use (the business’) money to pay for various personal expenses including clothes, massages, country club memberships, and the costs associated with remodeling his condo,” the lawsuit reads. “Piemonte has likewise used (the business’) dollars to pay for Christmas gifts for friends and family … Some of those gifts were more lavish than the others, such as a piece of jewelry he purchased for Rosanna.”
O’Reilly wants Piemonte to repay any personal expenses footed by the dealership, according to the lawsuit. He is also asking the court to appoint a custodian to oversee the business.
Cook County Judge Neil Cohen denied O’Reilly’s emergency petition for a guardian earlier this week.
Attorneys for both O’Reilly and the Piemontes declined comment on the lawsuit.
Piemonte also owns Nissan and Chrysler dealerships in the Chicago area. O’Reilly does not own stock in those locations, according to the lawsuit.
O’Reilly’s original partnership agreement with Piemonte allows him to purchase Piemonte’s majority share upon his death for book value, the complaint states.
After a series of hospitalizations and medical procedures in recent years, Piemonte began to rethink the arrangement and approached O’Reilly at Rosanna Piemonte’s urging to discuss modifying the terms of the partnership, according to the lawsuit.
The complaint states that when O’Reilly refused, the couple began to ostracize him from the business by excluding him from meetings and barring him from the sales floor and service department.
The couple wants Rosanna Piemonte’s son to take over the business instead of selling Al Piemonte’s shares to O’Reilly, the lawsuit states. O’Reilly says in court documents that he has no interest in parting with his shares and has filed the lawsuit to protect his financial stake in the company.
“(The dealership) is being grossly mismanaged by Piemonte and Rosanna,” the complaint states. “Piemonte has systematically controlled and used the corporation for the benefit of him and his family members...In doing so, Piemonte has been using (the dealership) as his personal piggy bank.”
sstclair@tribune.com
twitter: @stacystclair
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