Great Lakes Wire

Aaron Morse, the former owner of Dark Horse Brewery in Marshall, Michigan, has pled guilty to conducting a criminal enterprise. The plea was entered in the 37th Circuit Court in Calhoun County and involves charges related to withholding employee retirement contributions and healthcare premiums for personal use. This offense is classified as a 20-year felony.

Michigan Attorney General Dana Nessel announced the plea deal, stating that Morse will receive deferred sentencing contingent upon his successful completion of an 18-month drug addiction program and full restitution to affected employees. Nessel emphasized the impact of payroll fraud on employees: “Payroll fraud and benefit contribution thefts often go undetected for years, and can cause significant financial harm to victim employees,” she said. “And it’s indisputably stealing, from the very people powering your business.”

The investigation into Morse's activities began with the Marshall Police Department after he passed bad checks totaling $20,972.82 to his employees. Additional investigations by the U.S. Department of Labor uncovered further discrepancies involving employee benefits.

Morse failed to remit over $36,000 in retirement contributions along with other funds meant for employer match retirement funds and health insurance policy premiums. These actions resulted in more than $50,000 in unpaid health claims affecting 36 employees.

Charges against Morse included five counts each of larceny by conversion, receiving and concealing stolen property, larceny by false pretense, alongside one count of conducting a criminal enterprise.

As part of his plea agreement, Morse must pay restitution covering both retirement contributions and healthcare costs incurred due to unpaid claims before completing his court-mandated drug treatment program. Failure to do so will result in sentencing on the felony charge.

Morse had previously admitted guilt regarding issuing non-sufficient fund checks exceeding $500 and agreed to make restitution payments for those offenses as well.