Ex-MI Brewery Owner Pleads Guilty To Conducting A Criminal Enterprise

MARSHALL, MI — The former owner of a southwest Michigan brewery pleaded guilty Tuesday to conducting a criminal enterprise, according to the Michigan Attorney General's Office.

Aaron Morse, 47, was initially charged with five counts of larceny by conversion, five counts of receiving and concealing stolen property, five counts of larceny by false pretense and one count of conducting a criminal enterprise, according to the attorney general's office.

A judge deferred Morse's sentencing pending a successful completion of 18 months of drug addiction programming and full payment of restitution to the victims, according to the attorney general's office.

If he fails to pay restitution before the drug program is complete, he faces up to 20 years in prison, according to the attorney general's office.

Officials said Morse, the former owner of Dark Horse Brewery in Marshall, intentionally and illegally withheld employee retirement contributions and healthcare premiums for his own purposes.

Marshall Police began investigating Morse after passing bad checks to his employees totaling $20,972, according to the attorney general's office.

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 the attorney general's office.

Investigators also determined 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, according to the attorney general's office.

Investigators said Morse used the stolen money to support the brewery until he sold the business in 2020.

"Payroll fraud and benefit contribution thefts often go undetected for years, and can cause significant financial harm to victim employees," said Michigan Attorney General Dana Nessel said. "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."