Former Dark Horse Brewing owner pleads guilty after stealing workers' retirement, health care contributions

MARSHALL. Mich. (FOX 2) - The former owner of Dark Horse Brewing Co. in Southwest Michigan pleaded guilty Wednesday after authorities say he kept employees' retirement and health care contributions.

Aaron Morse, 47, of Marshall, pleaded guilty to conducting a criminal enterprise.

An investigation into Morse began after it was reported that he passed more than $20,970 in bad checks to his employees of the Marshall brewery. He was charged for this as the U.S. Department of Labor told the Michigan Attorney General that Morse failed to submit his employees' retirement and health benefit contributions because he was keeping the cash.

According to AG Dana Nessel's office, Morse failed to remit more than $36,000 in retirement contributions, $29,000 in employer match retirement funds, and $24,000 in health insurance policy premiums, which eventually led to more than $50,000 in unpaid health claims to employees.

This stolen money was used to support the brewery until he sold the business in 2020.

Morse was granted deferred sentencing pending successful completion of 18 months of drug addiction programming and payment of full restitution to the victims. If he fails to pay restitution before the drug program is complete, he faces up to 20 years in prison.

"Payroll fraud and benefit contribution thefts often go undetected for years, and can cause significant financial harm to victim employees," said Nessel. "And it’s indisputably stealing, from the very people powering your business. This plea agreement secures restitution to the working men and women Morse scammed out of thousands of dollars and benefits. I am grateful for the investigative efforts of the Marshall Police Department and the U.S. Department of Labor for uncovering these crimes."