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Release Date: 11/17/1998
Release Number:Dallas
OPA: 98-97- 11-17
Contact Name: Diana Petterson or
Contact
Name:Beverly Sepulveda
Phone Number: 214.726.4777, ext 222 or
221 |
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The owner of the Dallas-based firm ISG State Operations, Inc. was
indicted today by a Dallas County grand jury for allegedly misappropriating
$6,933 in 401(k) contributions owed to the company's retirement plan. |
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The company processed Medicaid claims under a contract with the
State of Texas and sponsored the ISG State Operations, Inc. 401(k) plan. The
401(k) plan is governed by the Employee Retirement Income Security Act
(ERISA). |
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Kenneth A. Blow allegedly misappropriated employee contributions
of the 401(k) plan over the period August to September 1995 by retaining the
contributions in the corporate’s checking account and using the money to
operate the business. At the time of the alleged improper action, Mr. Blow was
the sole owner of the company and responsible for depositing withheld employee
contributions into the plan. |
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The case resulted from an investigation conducted by the Dallas
Regional Office of the Labor Department's Pension and Welfare Benefits
Administration into alleged violations of ERISA. The case is being prosecuted
by Assistant District Attorney Tom Cox of the Dallas County Criminal District
Attorney's Office. |
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State of Texas v. Blow
Criminal No. 98-02733 |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7755. |
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