CHARLOTTE, N.C. — A grand jury indicted the former head of a Charlotte tech company after accusations he stole money meant for the company's 401(k) plan, according to documents unsealed Thursday.
Cameron Garrison is charged with theft or embezzlement from an employee benefit plan and fraud or swindles.
The grand jury indictment, handed down Tuesday, said Garrison founded Garrison enterprises in 1999 and was Chief Executive Officer of Garrison Enterprises until his termination in 2010.
Between 2008 and 2010 Garrison "maintained the employee's monies in the general assets of the corporate bank account and then spent the monies that should have been deducted for, among other things, personal expenses," according to the indictment.
Those personal expenses included paying off personal credit cards and credit cards in the name of his wife, the indictment said. Investigators said he failed to remit $95,000 to the 401(k) plan.
Cases involving 401(k) fraud are not out of the ordinary.
Financial experts told Channel 9 it has drawn increasing scrutiny from the Department of Labor in recent years.
"The Department of Labor is definitely out there actively pursuing these types of situations," said Gray Langley, with Farris, Cooke and Associates.
A court appearance for Garrison has not been scheduled.
A family member told Channel 9 that an attorney for Garrison would release a statement. As of Thursday night, Channel 9 had not received it.
Court records show the Department of Labor sued Garrison over the 401(k) plan in 2011.
The matter was resolved in 2013 when a judge ordered Garrison be permanently enjoined from serving "as fiduciary, trustee, agent or representative in any capacity to any employee benefit plan subject to the Employee Retirement Income Security Act.”
Garrison Enterprises paid $115,981 in restitution for all losses to the plan, representing unremitted employee contributions, interest and lost opportunity costs, the court order said.
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