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Release Date: November 21, 2008
Release Number: 08-1738-ATL
Contact Name: Gloria Della/Richard Manning
Phone Number: 202.693.8664/202.693.4676
Atlanta — The owner of defunct Wesco Signs
Inc., Concord, North Carolina, pleaded guilty in the U.S. District Court
for the Middle District of North Carolina in Greensboro to two counts of
embezzlement of assets from the company’s 401(k) and health plans.
The plea agreement was prosecuted by the U.S.
Attorney’s Office for the Middle District of North Carolina and was
investigated by the Atlanta Regional Office of the U.S. Department of
Labor’s Employee Benefits Security Administration (EBSA).
Mitchell W. Messer was indicted by a federal grand
jury August 26 on two counts of embezzling assets from employee benefit
plans governed by the Employee Retirement Income Security Act. The
indictment charged Messer with embezzlement of $19,286.21 in 401(k)
assets and $5,583.38 in health care premiums.
During the period from February 4 through June 17,
2005, he failed to forward retirement plan contributions deducted from
employees’ paychecks. Messer also did not forward health care premiums
withheld from employee wages during the period of July 11 to November 4,
2005.
At the time of the criminal violations, Messer was
the majority owner and president of Wesco Signs. The company, which
manufactured electric and on-premise signs, sponsored a 401(k) for 46
participants as well as a health benefit plan.
As part of his plea agreement, Messer will make
restitution to the plans and agreed to pay a special assessment of $100
for each offense. He is scheduled to be sentenced February 5, 2009.
“Theft of employee benefit assets jeopardizes the
benefits of workers. This case sends a clear message that theft of
employee benefit plan assets is a serious crime that will be prosecuted
to the full extent of the law,” said R.C. Marshall, director of
EBSA’s Atlanta Regional Office.
U.S. v. Messer
Criminal Number 1:08CR324-1
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