He pleaded guilty to embezzlement. Now, Denair man must pay Modesto car dealership.

A Stanislaus County judge on Tuesday ordered a Denair man to pay back nearly $300,000 he embezzled from the American Chevrolet auto dealership in Modesto.

Michael Wayne Badiou, 57, pleaded guilty to embezzlement and forgery, along with an enhancement for embezzling more than $200,000 as part of a plea deal.

In exchange, the Stanislaus County District Attorney’s Office agreed to only seek up to a maximum sentence of 365 days in jail, according to John Goold, a spokesman for the office.

Badiou was arrested Dec. 2, 2015 in connection with the embezzlement investigation.

He was a vehicle wholesaler who supplied American Chevrolet with used vehicles to sell on the dealership lot. Badiou also sold customer trade-in vehicles at auction and to other dealerships, according to filed court documents.

Prosecutors accused Badiou of embezzling money from the sale of 22 vehicles in the amount of $298,760 from March 2012 to January 2013. He sold them without paying American Chevrolet its share, according to authorities.

American Chevrolet President David Halvorson spoke in court Tuesday morning shortly before Badiou was sentenced. He called Badiou’s crimes “a betrayal of trust,” to his business and his customers, including an 86-year-old man with a wife who died of cancer.

“And frankly, that’s as close to elder abuse as I can see,” Halvorson told the judge.

Badiou also spoke in court before he was sentenced. He said he will make amends to those affected by his crimes and continue to pay back the money he stole.

“I’m deeply sorry for all the problems I have caused,” Badiou told the judge.

Robert Forkner, Badiou’s attorney, told the judge that his client already has paid back a significant amount of the restitution he owes, even selling his house to pay back the money.

Forkner argued that Badiou used the embezzled money to support his family; he didn’t spend it on extravagant items. The defense attorney said his client has taken responsibility for his actions.

Deputy District Attorney Sean Doering argued that Badiou has not taken responsibility for his crimes, and he used some of the embezzled money to pay for a country club membership.

Halvorson has told The Modesto Bee that Badiou was a good friend of his brother, Vice President James Halvorson, and they both knew him for many years before engaging in a business relationship.

The brothers met with Badiou after he fell behind on payments to American Chevrolet. He told them he was getting a loan from his mother-in-law that would help him pay off his debt.

Instead, Badiou began concealing his thefts by fraudulently coding vehicles in American Chevrolet’s computer system so that they would not appear on vehicle management reports, according to court documents.

On Tuesday, Superior Court Judge Thomas Zeff sentenced Badiou to serve a year in the Stanislaus County Jail and three years of probation, along with paying back the $298,760.

The judge ordered Badiou not to own or possess guns or ammunition, and the defendant can be searched for stolen property at any time during his probation.

Several days after his 2015 arrest, Judge Linda McFadden reduced Badiou’s bail amount from $250,000 to $25,000. He was later released on bail.

The defendant already has served seven days in jail, and he received an additional six days credit for good behavior while in custody. Judge Zeff scheduled Badiou to begin serving the remainder of his jail sentence on May 4.

This story was originally published January 30, 2018 at 2:15 PM with the headline "He pleaded guilty to embezzlement. Now, Denair man must pay Modesto car dealership.."