Bail reduced for Denair man accused in American Chevrolet embezzlement case

A judge on Tuesday reduced the bail amount from $250,000 to $25,000 for a Denair man accused of embezzling nearly $300,000 from the American Chevrolet auto dealership in Modesto.

Michael Wayne Badiou, 55, has been held at the Stanislaus County jail since his arrest last Wednesday. Prosecutors have charged him with felony embezzlement and forgery, along with an enhancement of embezzling more than $200,000. If convicted, the enhancement could affect the sentence.

The defendant appeared in court Tuesday morning for a bail review hearing. Robert Forkner, Badiou’s attorney, told the judge that his client has no previous criminal record and does not present a risk of leaving the region to avoid prosecution.

Forkner argued that the embezzlement investigation began in 2013, and that his client cooperated with investigators by handing over his bank records. The defense attorney was asking the court to release his client on his own recognizance. He said Badiou was willing to turn over his passport.

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

Prosecutors claim Badiou embezzled $298,760 from the sales of 22 vehicles from March 2012 to January 2013. Authorities say the defendant sold the vehicles without paying American Chevrolet its share.

American Chevrolet President David Halvorson and his brother, Vice President James Halvorson, 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.

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

“Badiou then sold the vehicles and kept the proceeds for himself,” the documents read.

Stanislaus Superior Court Judge Linda McFadden said that when setting bail, she has to consider the potential threat to the public, mainly those who might conduct business with Badiou. She said the Modesto dealership, however, is well aware of the allegations against the defendant, so the risk to the public is not as significant.

The judge ordered Badiou to turn over his passport and surrender his license to sell vehicles. Forkner told the judge that his client has already voluntarily turned in that license.

McFadden also ordered Badiou to stay away from the American Chevrolet dealership while out on bail. The judge scheduled the defendant to return to court Jan. 14 for a pretrial hearing. Badiou was expected to post bail by the end of the day.

This story was originally published December 8, 2015 at 2:18 PM with the headline "Bail reduced for Denair man accused in American Chevrolet embezzlement case."