Owner of defunct North Carolina sign company sentenced for embezzling 401(k) and health plan assets

Atlanta — The owner of defunct Wesco Signs Inc., Concord, North Carolina, has been ordered by the U.S. District Court for the Middle District of North Carolina in Greensboro to pay $57,089.25 in restitution to the company’s 401(k) and health plans and sentenced to five years of supervised release. Mitchell W. Messer also must perform 416 hours of community service.

Messer was indicted by a federal grand jury August 26, 2008, on two counts of embezzling assets from employee benefit plans governed by the Employee Retirement Income Security Act. The indictment charged Messer with embezzlement of $19,286.21 in 401(k) assets and $5,583.38 in health care premiums.

During the period from February 4 through June 17, 2005, he failed to forward retirement plan contributions deducted from employees’ paychecks. Messer also did not forward health care premiums withheld from employee wages during the period from July 11 to November 4, 2005.

At the time of the criminal violations, Messer was the majority owner and president of Wesco Signs. As part of his plea agreement, Messer agreed to make restitution to the plans and to pay a special assessment of $100 for each offense.

The company, which manufactured electric and on-premise signs, sponsored a 401(k) for 46 participants as well as a health benefit plan.

The criminal case was prosecuted by the U.S. Attorney’s Office for the Middle District of North Carolina in Greensboro, and was investigated by the Atlanta Regional Office of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA).

“Theft of employee benefit assets jeopardizes the benefits of workers. This case reaffirms the Labor Department’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs,” said R.C. Marshall, director of EBSA’s Atlanta Regional Office.

U.S. v. Messer
Criminal Number 1:08CR324-1

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