Since no one wants to answer and I have solved my issue, I will answer this question myself.
Yes, it can lead to memory leak from what I have experienced and it depends how you set the backcolor for your control. If your control is not placed on the winform, then setting and resetting backcolor within short amount of time can lead to memory leak as Hans Passant has said. So, I followed his advice.
Basically I placed my control right on the winform and from my thread, I set and reset the backcolor. So far it has worked. I have been running my program for the last 5 days nonstop and it hasn't crashed or lost control.