The Anoka County District Court trial of an Anoka businessman on felony theft by swindle and other charges has been delayed. He will go on trial Jan. 14, 2013.
After 54 additional charges were added to the criminal complaint, David Elvig, who is a Ramsey City Council member, and his defense attorney Richard Malaki asked for and were granted an delay in the scheduled Oct. 5 trial.
They need time to review the additional discovery documents and the prosecutor’s new theory on the case, Malaki said.
Elvig, 18026 Ute St., was charged in court September 2011 with two felony counts of theft by swindle and theft by take/use/transfer of moveable property.
The 54 additional charges, including felony, gross misdemeanor and misdemeanor counts of theft by swindle, theft by take/use or transfer of moveable property as well as theft by indifference to owner rights were added Aug. 29.
According to court documents, the new charges represent each one of Elvig’s E-Street Makers, Inc. employees.
The complaint filed by the Isanti County Attorney’s Office, which handled the case at the request of the Anoka County Attorney’s Office, alleges that 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 (EBSA) investigated Elvig for allegedly misappropriating employee contributions to the company’s 401(k) Profit Sharing Plan, group health care and dental plans and 401(k) loan repayments.
The EBSA investigators allege that 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 that 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 subject to costly penalties and taxes, the complaint alleges.
Tammy Sakry is at firstname.lastname@example.org