When a former Anoka businessman walks into an Anoka County District Court room in October for his jury trial for what had originally been two felony charges, he will now be facing many more.
The criminal complaint against David Elvig, 18026 Ute St., Ramsey, was amended Aug. 29 to add 24 additional felony and 30 gross misdemeanor and misdemeanor charges of theft by swindle, theft by take/use or transfer of moveable property as well as theft by indifference to owner rights.
Elvig, who is a Ramsey City Council member, was originally charged in September 2011 with two felony counts of theft by swindle and theft by take/use/transfer of moveable property.
According to court documents, the new charges represent each one of Elvig’s E-Street Makers, Inc. employees.
Elvig, who was the owner and president of E-Street Makers, has been accused of embezzling from his employees.
According to the complaint, which was handled by the Isanti County Attorney’s Office, Elvig embezzled $19,596.83 from his employees’ 401(k) profit sharing, group health and dental plans, from April 23, 2009 to Jan. 14, 2010.
The 14-year-old E-Street Makers, 731 Lund Blvd., went out of business in December 2009. The business assets were foreclosed in March 2011.
The U.S. Department of Labor Employee Benefits and Security Administration (EBSA) investigated Elvig for allegedly misappropriating employee contributions to their 401(k) profit sharing, group health care and dental plans and 401(k) loan repayments.
The EBSA investigators allege Elvig kept the contributions in E-Street’s general operating account and used it to pay business expenses, such as payroll, instead of applying it to the three employee plans for up to 15 employees.
According to the complaint, because the funds were not transferred to the plans, the health plan was terminated July 30, 2009, retroactive to May 31, 2009.
Investigators also found E-Street’s dental plan was terminated effective March 1, 2009.
In addition to losing earnings on their 401(k) plans, employees with 401(k) loans defaulted on their repayments as a result of the money not being transferred to the plan and they were subjected to costly penalties and taxes, the complaint alleges.
Elvig’s trial is scheduled for Oct. 1.
Tammy Sakry is at [email protected]