RAMSEY, Minn. – Former Ramsey city councilmember David Elvig was sentenced this week for embezzling funds from his employees’ retirement accounts. He will be serving sixty days in jail and paying almost $25,000 in restitution and serving 15 days of community service. He also received a 13 month stayed prison term.
Elvig was found guilty on two felony charges of theft by swindle in April. While he was the owner of E-Street Makers, he was accused of embezzling more than $19,000 from the 401(k) funds of his employees over the course of a nine month period. In December of 2009, E-Street Makers went out of business. According to a 2011 criminal complaint, Elvig kept the 401(k) employee contributions and used them to pay for business expenses, such as payroll, rather than applying it to the employee plans.
Elvig has since resigned from his position on the Ramsey City Council. Ramsey will be holding a special election at the end of July to fill the seat formerly held by Elvig.
