Missouri Business Owner Pleads Guilty To Embezzling From Company 401(K) Plan

Raymond A. Potts II, 52, of Sedalia, Missouri and the owner of Potts Contracting Group, Inc., pleaded guilty Friday to looting the company 401(k) plan and making false statements to a government agency, the US Department of Labor. According to prosecutors, commencing in January 2001, Potts embezzled $382,334 from his company's 401(k) plan by failing to forward appropriate pension contributions. Potts has a prior history of failing to comply with employee benefit regulations. In 1997 he was subject to a consent agreement with the Department of Labor on similar charges and agreed to pay $68,419 that was owed to the plan at that time. In the current case, Potts faces up to 5 years in prison plus restitution and a fine of as much as $250,000.

Read the story here, here and here.

Read the DOJ's announcement of Potts' guilty plea here.