Bus company at West Point pleads guilty to not paying employee 401K funds


GOSHEN – A bus company that provided transportation on and off the US Military Academy at West Point, pled guilty on Thursday in Orange County Court to fraud for failing to make 401K pension plan contributions to its employees’ retirement accounts as promised and making false representations to the workers about those payments.
As a result, Kalobe, Inc., a subsidiary of Atlanta-based Infinite Services and Solutions, Inc., was fined $2,500 by Judge Robert Freehill and ordered to pay just under $285,000 in restitution to the employees.
Orange County District Attorney David Hoovler said there is another caveat to their punishment.
“As a result the company and the subsidiary are barred from doing any public works projects in the State of New York for the next five years and this marks the first case that we have ever done in Orange County where we have charged someone in fraud in the sale of securities and where we had a debarment of them from public works projects in the state,” he said.
Hoovler’s office became aware of the situation by a tip from Teamsters Local 445, which represented the workers. The tip hotline is 845-291-2107.
“I am glad that justice has been served on this case, and these companies can no longer bid on public works projects,” said Local 445 public officer. 

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