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Irotas owners plead not guilty

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They are charged with stealing from employees’ 401K funds

By Lisa King

Two Finchville residents have pleaded not guilty to stealing nearly a half-million dollars in employee benefits from a company they owned in Shelbyville.

William Kiser, 73, and Mary Sue Kiser, 70, owners of the now-closed Irotas Manufacturing Company in Shelbyville, were indicted June 9 on federal embezzlement charges.

The plant was in operation from 1977 to 2009.

The indictment charges that the Kisers embezzled $487,138 from their employees’ profit-sharing plan during a 6-month period, from March through August in 2008.

They received new court dates at their arraignment Monday in U.S. District Court.

They are scheduled for a motion hearing Aug. 3 and a pretrial conference Aug. 19. Their trial is set for Aug. 30. The first will be held at the federal courthouse in Lexington, and the other two are scheduled for the federal courthouse in Frankfort.

Officials from the office of the United States Attorney say the federal charges stem from the couple conspiring to defraud the United States by embezzling from an employee benefit fund. The penalties the Kisers could incur if found guilty include up to 5 years in prison, with 3 years supervised release, a $250,000 fine, criminal forfeiture of assets, a mandatory special assessment of $100 per count and restitution, if applicable.

Attorneys for the Kisers, Matthew Malone and Rachel Yavelak of Lexington, say their clients have no comment at this time.