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The owner of a former Albert Lea construction company pleaded guilty in Freeborn County District Court on Monday to theft of money that had been paid to him for real estate improvements.

Douglas Lyle Lembke, 70, initially faced three counts of theft of payment for real estate improvement but pleaded guilty to one count as part of a plea agreement.

Court documents state police began investigating Lembke in May 2023 after receiving a report of a couple who had signed a contract for a new deck with Lembke Construction and had paid their bill to the company totaling almost $70,000, but were later served with a lien by Arrow Building for the materials that were used in the project. Lembke had reportedly taken in the total payment for the project but had not paid Arrow Building for the supplies that were used.

Upon investigation, police learned there were two other people who had a similar problem with the company.

The second victim told police they had hired Lembke Construction for a project on their front steps and sidewalk and was billed about $24,000. The project was complete and the victim paid the bill but later received a lien from Arrow Building Center for about $4,000. They paid off the lien and then sued the construction company and won.

The third victim reportedly had some house remodeling done by the construction company, and when the project was complete, the victim paid the total amount of the bill, about $22,000. Arrow Building Center later filed a lien against the property for about $4,500.

The detective found during the investigation that employees of Lembke Construction would receive checks for work done on projects and then would turn them into the office.

Lembke was in charge of paying the bills.

An employee told police that Lembke came in one Friday and told the employees that they wouldn’t have jobs the following Monday and that Lembke failed to pay their wages toward the end of the business. There were no books or paperwork left because Lembke had reportedly cleared out everything when he left.

He now lives in Katy, Texas, where he reportedly has a construction business with the same name.

In the plea agreement, Lembke agreed to pay restitution for the three victims in the case, totaling over $28,000. The agreement called for no executed jail time, and states if the restitution is paid by his sentencing on Jan. 30, he could avoid a conviction and the charge would be dismissed when terms of the stay are met.

If the restitution is not paid in full by sentencing, both the defense and prosecution agree the court shall order a stay of imposition.