The U.S. Labor Department has sued the former CEO of Faribault Woolen Mills, alleging the company pocketed employee health insurance contributions for two months before its doors shut in 2009.
The lawsuit filed in U.S. District Court in Minnesota seeks $55,040 from former CEO Michael Harris, who shut down the mill in early 2009, putting 35 workers out of jobs. It has since reopened under new owners who are not linked to the alleged wrongdoing.
According to the lawsuit, HealthPartners had canceled the company's health insurance policy for nonpayment in January 2009, but the company continued to deduct contributions from workers' paychecks.
Harris, who formerly resided in Wayzata, could not be reached to comment.