Woman sued over company spending

A Huntley woman hired to operate a small chain of Hallmark stores used nearly $50,000 in company funds to pay for a cruise, hotel in Las Vegas, shoes and other personal items, a lawsuit filed this month alleges.

Lorenn Ltd., which operates Hallmarks in Huntley, Bartlett, Hoffman Estates, South Elgin and Buffalo Grove, claims Janice Hoeft improperly used the stores' assets while in a high-ranking position with the company between 2001 and 2005.

The suit, filed in McHenry County Circuit Court, seeks about $75,000 in compensatory damages and undisclosed punitive damages.

Hoeft did not return calls for comment Monday or Tuesday. Her husband said she would not answer questions about the allegations.

According to the suit, Lorenn hired Hoeft in November 2001 to operate the first of what eventually would be five Hallmark stores, giving her access to lines of credit and possession of corporate property.

In March 2005, the suit states, the company discovered several credit charges that may not have been legitimate business expenses, including the cruise, hotel, home products and other items.

When asked to explain the expenses, Hoeft instead resigned, according to the lawsuit.

Lorenn attorney Michael Corsi declined further comment on the case.

There are no criminal charges against Hoeft in McHenry or Kane counties relating to the allegation, a record search shows.

The Huntley store was at the center of a controversy in 2004 when Hoeft opened it despite not having a proper permit. At the time there were allegations Hoeft did so at the suggestion of her husband, Terry Hoeft, who at the time was a Huntley village trustee. Both Hoefts denied those claims.

Terry Hoeft served two terms as a village trustee, from 1988 to 1993 and again from 2001 to 2005. He did not seek re-election in 2005.

The lawsuit against Janice Hoeft is scheduled to make its first court appearance Sept. 11 before Judge Michael Caldwell.