California Co. Owner Charged with Embezzling 401(k) Assets

According to a press release from the agency, the former owner of the California-based window manufacturing company, Douglas Wayne Bowen, was charged with eight counts of embezzlement from a 401(k) retirement plan, and 10 counts of failure to report wages and other employment information to the state of California, as well as underreporting wages to the State Compensation Insurance Fund.

The charges follow a U.S. Department of Labor investigation that revealed that from June 2003 through December 2004, Bowen deducted more than $13,000 from employees’ paychecks as contributions owed to their 401(k) accounts. Rather than depositing contributions into employees’ accounts, he used the money for personal purposes.

Bowen was also charged with failing to accurately report to the State Compensation Insurance Fund the wages paid by the company, which allowed him to obtain workers’ compensation insurance at a fraudulently reduced rate.  

He also skirted having to pay state payroll taxes by failing to report wages and other information to the state in 2003 and in 2004.

The case is The People of the State of California v. Douglas Wayne Bowen 08-11-1952 Criminal Number RIM 136046.