Plan Trustees Sentenced for Embezzling From 401(k)

Trustees of the Irotas Manufacturing Co. Inc. 401(k) plan have been sentenced for embezzling $487,000 from the plan, and have been ordered to pay restitution.

The sentence resolves a lawsuit based on the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) Cincinnati Regional Office investigation, which found violations of the Employee Retirement Income Security Act (ERISA). The investigation found William H. Kiser and Mary Sue Kiser, who owned Irotas Manufacturing, in Shelbyville, Kentucky, embezzled the funds for their own use between June 17 and August 14, 2008. The Kisers have been sentenced to 15 months in prison and three years of supervised release.

“This sentencing underscores the Department of Labor’s resolve to aggressively pursue those who steal from employee benefit plans,” said L. Joe Rivers, EBSA’s regional director in Cincinnati. “We will continue our commitment to investigating thefts from employee benefit plans under our Contributor Plans Criminal Project, which targets those individuals who threaten the retirement and health benefits of American workers.”