Dallas Businessman Indicted For Misappropriating 401(K) Plan Assets

Archived News Release — Caution: Information may be out of date.

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.

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).

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.

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.

State of Texas v. Blow
Criminal No. 98-02733

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Archived News Release — Caution: Information may be out of date.

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