By Kelly Doran
Sun staff

Frisch’s Restaurants has filed a civil lawsuit accusing an employee of stealing from the company for years.

The lawsuit was filed against Union Township residents Michael Hudson and Pamela Hudson, H-3 Development, LLC., and WPMH Properties, LLC., upon the discovery that Michael Hudson allegedly stole from the company during his time as assistant treasurer, according to court documents.

Hudson was a treasurer from 2004 until he resigned on Dec. 17, 2014, according to court documents. He controlled payroll and allegedly increased the funds paid to him by both increasing the amount going into his account and creating a separate payroll file to pay himself more.

The company is estimating that Hudson stole about $3.3 million, according to a press release. Hudson told Frisch’s he is assuming full responsibility for his actions, the release states.

“In the company’s view at this point in the investigation, the fraud is not expected to have a material impact on previously reported net income for fiscal years 2014, 2013, 2012 and the first quarter of fiscal 2015,” the release states.

Hudson allegedly had at least three different bank accounts that he deposited money into, according to court documents. To hide this, he created fake accounting entries to hide the lost money.

Hudson allegedly used the money to buy 19 parcels of property in Hamilton and Clermont Counties as well as vehicles and jewelry, according to court documents.

Hudson allegedly transferred money to himself, his wife, his children and other members of his family, the two companies he formed and to Wade Pyles, a business associate. Transfers include property purchased in Hudson’s name using Frisch’s money, according to court documents.

Frisch’s has filed three counts against Hudson and the other defendants, fraud claim and conversion against Hudson and unjust enrichment against all defendants, according to court documents.

The company is asking for full restitution for the money stolen, according to the release. Frisch’s is putting checks and balances into its system to prevent this from happening again.

Frisch’s and Hudson both refused to comment.