Members of a Kaua'i family allegedly embezzled nearly $12 million from two Garden Island businesses from 1999 through 2007, according to a lawsuit filed in federal court.

The suit was filed by O. Thronas Inc. and Kauai Aggregates against former employee Alva Blake and several members of the Blake family.

It alleges that Blake, a former quarry manager and vice president of Thronas, and Blake's wife, Helen, a former bookkeeper for the firm, illegally diverted company funds to themselves and their two children.

The alleged scheme was discovered in 2007 by Priscilla Thronas, daughter of company founder and owner Olaf Thronas, who took control of the firm and Kauai Aggregates after her father died in 2005, according to the suit.

Priscilla Thronas confronted Helen Blake in August 2007 and asked "why certain members of her immediate family were apparently receiving payroll when they were not — and had not been — working for" the companies, the suit alleged.

Thronas was "particularly puzzled" by the fact that one of Blake's sons, a full-time police officer in Santa Ana, Calif., had been paid $650,000 by O. Thronas and Kauai Aggregates in 2006, the suit alleged.

Helen Blake committed suicide in September 2007, according to the suit.

Alva Blake could not be reached for comment on the suit.

The Blakes' son who works as a police officer, Kanan K. Blake, said last week he could not comment on the suit.

The legal complaint alleges that Kanan Blake and his wife received more than $2.8 million in unauthorized payments from the Kaua'i companies and have been living since 2006 in "a million-dollar-plus home" in San Clemente, Calif.

Also named as defendants in the suit are another son and daughter-in-law of Alva and Helen Blake.

Attorney Michael Rudy filed the suit and said this week that "there very well could be criminal charges" sought against the defendants.

"We haven't contacted the U.S. Attorney's office yet," Rudy said.