The former president of Kephart Trucking Company will serve 8 to 32 years for stealing from his employee’s 401K plans and insurance premiums.
Timothy Kephart, 56, was sentenced in a Clearfield County, Pennsylvania court on Friday before many of the 120 trucking company employees he stole over $300,000 from. Kephart claimed that he stole the money to keep the company going during the recession.
Kephart’s former employees addressed the court before the sentencing, claiming that the company had been fair and family oriented until Timothy Kephart took over for his father Wallace Kephart. They said that Kephart Trucking became a terrible place to work.
Employees claimed that they were not paid and struggled to pay bills or put food on the table. One widow even claimed that her husband took his life after Kephart’s theft left his life “in shambles.” Others said that the insurance premium theft left them with massive medical bills — and harassment from debt collectors when they were unable to pay.
Kephart still has 2 years to serve on a federal sentence for a Dart Trucking case in Ohio. If he manages to get into an alternative minimum program, he could knock his 8-year minimum sentence down to 6 years, but he will still be behind bars until he is in his mid-sixties.
Kephart’s own 401K was seized to repay his employees. The court has also ordered him to repay $40,000 to his victims.