Former President of Fine Line Drywall, Keene, New Hampshire, Charged with Theft of Employee IRA Funds

Archived News Release — Caution: Information may be out of date.

Boston, Massachusetts - The former president of the defunct Fine Line Drywall, Inc. of Keene, New Hampshire, has been indicted on two counts of theft by misapplication of property in the State of New Hampshire Superior Court. The defendant, Mark R. Blanchard, was arraigned June 1, 2006 in Superior Court in Keene.

The criminal charges follow an investigation by the Boston regional office of the U.S. Labor Department’s Employee Benefits Security Administration (EBSA). The case is being prosecuted by the Cheshire County Attorney’s Office in Keene.

Blanchard was charged with theft by recklessly failing to make specified payments to the Fine Line Drywall, Inc. Simple IRA Plan from February 2004 through December 2004 when the company went out of business. Specifically, the alleged theft involved employee contributions totaling over $29,000 and employer matching contributions of over $18,000.

“These funds belong to the employees of Fine Line Drywall who were participants in the company IRA plan,” said James Benages, Boston regional director for EBSA. “We are working vigorously with New Hampshire authorities to make sure these funds are restored to the rightful beneficiaries, and that justice is served in this case.”

In a separate civil lawsuit, the Labor Department sued Blanchard last month in U.S. District Court for the District of New Hampshire seeking restoration to the plan of over $29,000 in employee contributions under the provisions of the Employee Retirement Income Security Act (ERISA). ERISA is the federal law that protects private employee pension and benefit plans.

If convicted, Blanchard faces a possible sentence of seven to 15 years imprisonment. Following his arraignment, Blanchard was released on $50,000 bail. Pre-trial hearings are scheduled for July and August, while the trial is scheduled for September.

(State of New Hampshire v. Mark R. Blanchard)
Criminal No. 06-S-0326 and 06-S-0327

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Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075