Former Owner of Dark Horse Brewing Co. Pleads Guilty in Employee Benefit Theft Case

Mar 28, 2024

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MARSHALL, Mich. – Aaron Morse, the former owner of Dark Horse Brewing Co. in Southwest Michigan, has pleaded guilty to conducting a criminal enterprise after allegedly withholding employees’ retirement and health care contributions.

Allegations and Investigation

Morse, aged 47 and residing in Marshall, faced charges following an investigation into reports that he had issued bad checks totaling over $20,970 to employees at the Marshall brewery. The U.S. Department of Labor informed the Michigan Attorney General’s office that Morse had failed to submit his employees’ retirement and health benefit contributions, opting to retain the cash instead.

Financial Impact on Employees

The Attorney General’s office revealed that Morse failed to remit more than $36,000 in retirement contributions, $29,000 in employer-matched retirement funds, and $24,000 in health insurance premiums. This failure resulted in over $50,000 in unpaid health claims for employees. The diverted funds were reportedly used to sustain the brewery until its sale in 2020.

Legal Consequences

Morse’s guilty plea comes with a deferred sentencing arrangement, contingent upon his successful completion of 18 months of drug addiction programming and full restitution to the victims. Failure to fulfill these conditions could result in a potential prison sentence of up to 20 years.

Michigan Attorney General Dana Nessel emphasized the severity of such offenses, stating, Payroll fraud and benefit contribution thefts often go undetected for years, and can cause significant financial harm to victim employees. Nessel expressed gratitude for the collaborative efforts of the Marshall Police Department and the U.S. Department of Labor in uncovering the crimes.

Justice Sought for Victims

The guilty plea marks a significant step in seeking justice for the employees affected by Morse’s actions. As legal proceedings continue, efforts to ensure full restitution and accountability remain paramount.

For further updates and local news coverage, stay tuned to TLNA2 News.

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