(ABC 6 News) – The owner of a former Albert Lea construction business pleaded guilty to one of three felony theft charges in Freeborn County Court on Monday.

Former Albert Lea employee Douglas Lyle Lembke pleaded guilty to the charge of Theft of Payment for Real Estate Development on November 13, and that charge was pleaded guilty on November 18.

Lembke’s sentencing is scheduled for January 30, 2025.

According to the Better Business BureauFollowing news that consumers paid the full cost of the projects, but subcontractors and suppliers were not paid, Lembke Construction’s license was revoked.
“A business’s failure to fulfill its promise to refund consumers indicates that they are untrustworthy, financially irresponsible, or otherwise incompetent or unqualified to act under the license granted by DLI,” the BBB says on its website.

According to the Better Business Bureau, Lembke’s license and business registration were revoked and he was ordered not to provide construction or roofing services in the State of Minnesota.

Lembke currently lives in Katy, Texas, according to court records. there is one Job application for Lembke Construction in the same city.

In May 2023, the Albert Lea police department began investigating a complaint that a couple paid Lembke Construction for a home improvement, but then received a lien from a contractor who charged them for materials used, according to Lembke’s criminal court records.

They told police the total bill from Lembke included demolition of the old deck, materials and labor, and installation of the new structure, which cost about $70,000, according to court documents.

The customers later learned that subcontractor Arrow Building Center had filed a lien against them for $20,235. They told law enforcement that Lembke told them not to worry about the foreclosure and that he would pay Arrow Building Center over time.

They also notified law enforcement about two other homes in Lembke that may have experienced similar problems, according to court documents.

Police learned that Arrow Building Center billed two other customers for more than $4,000 per person after Lembke failed to give those payments to the contractor.

Police interviewed several Lembke Construction employees who confirmed that Douglas Lembke was responsible for receiving checks and paying invoices, according to court documents.

One employee said Lembke did not have enough money to pay Arrow Building Center and was surprised that there were not more complaints to law enforcement because Lembke did not pay the bills in question or answer his phone.

Another employee who helped receive and deposit the checks told police that Lembke cleared out all the books and paperwork when he “left” work.

Court documents allege employees were suddenly told they would have no jobs and had not received their last paycheck.

Under Lembke’s plea agreement, the business owner pleaded guilty to only one charge of payment theft but agreed to pay restitution in all three cases.

He will not receive any prison sentence for this.

“If the full compensation has been paid at the time the sentence is imposed, the State,
“The court will decide to postpone the sentence,” the plea agreement states. “However, if the full compensation has not been paid by the time the sentence is imposed, the parties agree that the court will decide to postpone the sentence.”