ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, January 17, 1996 TAG: 9601170069
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
DATELINE: BEDFORD
SOURCE: RICHARD FOSTER STAFF WRITER
State police are investigating claims that the former managers and owners of a now-defunct Bedford County direct-mail company embezzled from their workers' health-insurance fund.
According to a search warrant filed in Bedford County Circuit Court, former employees of Direct Mail Communications Inc. of Forest have alleged that payroll deductions for their health insurance were not deposited into a special checking account as required by law, causing the employee insurance plan to collapse.
No charges have been placed, and the investigation is continuing, said State Police Assistant Special Agent Robert H. Perry and Bedford County Commonwealth's Attorney Randy Krantz.
Investigators made copies of DMC's bank records covering Jan. 1 through Dec. 31, 1994. At that time, DMC was owned by Roger Ott and Charles Keith, former marketing executives with The Washington Times.
Neither Ott nor Keith could not be reached for comment Tuesday.
With 340 employees, DMC once was Bedford County's second-largest employer. It also was one of the largest direct-mail companies for nonprofit groups in the nation. Its clientele included former U.S. Senate candidate Oliver North, the Rev. Jerry Falwell, the Republican National Committee and the National Rifle Association.
DMC's assets were sold at foreclosure in December 1994 to Daniel Reber and Jimmy Thomas, who founded the company in 1989 and sold it to Ott and Keith in 1992.
The sale marked the end of two turbulent years, in which DMC went from a profit of $2.6 million to a $300,000 loss. More than 200 employees were laid off in 1994 amid financial troubles and dueling lawsuits from the past and present owners.
A federal lawsuit filed by Ott and Keith against Reber and Thomas over ownership and control of the business is ongoing.
Reber is suing Ott and Keith in Bedford Circuit Court. Reber and Thomas also have forced Keith and DMC - of which they are creditors - into involuntary bankruptcy. Keith is appealing the bankruptcy.
Reber and Thomas, who are best known in Lynchburg for bailing Liberty University out of a $30 million debt, refused to comment. They now operate a direct-mail company called MailAmerica in the space formerly occupied by DMC in the Forest Square shopping center on U.S. 221.
Staff writer Jan Vertefeuille contributed to this story.
LENGTH: Medium: 52 linesby CNB