The U.S. Department of Labor is suing Clearfield County businessmen to recover money from employee paychecks.
According to court documents, Timothy and David Kephart, owners and officers of Kephart Trucking, deducted money from paychecks to go to the company’s 401(k) plan as employee contributions and participant loan repayments. However, that money did not make it into the fund.
“The investigation determined that employee deductions representing voluntary contributions and loan repayments for employees of the company, totaling approximately $270,000 plus interest, were not remitted,” a Labor Department statement said.
The case was filed in U.S. District Court for the Western District of Pennsylvania.
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The filing’s only request as far as penalties is restitution of the funds, as well as interest, the appointment of someone to administer the funds, and a prohibition on the Kepharts from handling similar funds in the future.
But whether there will be criminal charges coming from the case, that’s not something the government is willing to say right now.
“The Employee Benefits Security Administration has the authority to conduct criminal investigations. The agency works with both state and federal prosecutors to pursue cases based on conduct that would violate federal criminal law (and in the case of state prosecutors where the conduct might violate both federal and state criminal law). Beyond this, I cannot comment,” said Leni Uddyback-Fortson, Labor Department regional director.
It is not the first federal case against Timothy Kephart.
Last year, the Morrisdale man was sentenced to 46 months in jail for a $3.6 milion check kiting scheme in his role as CEO of Dart Trucking in Ohio.