Carty plea hearing set June 18

A plea hearing in Washington County District Court has been set Monday, June 18 for the former Forest Lake business owner who is facing criminal charges that he diverted payroll deductions from employees that were intended for 401(k) accounts. Steven A. Carty, the former owner of City Looks and The Rage Hair Salon in Forest Lake, went before Judge John Hoffman on Wednesday, April 18 for a Rule 8 hearing, said Steve Povolny, first assistant Washington County hearing. Carty was represented by a public defender, Povolny said. On April 18, agreement was reached for a plea hearing on June 18. Carty, 51, who had been in the hair salon business here for more than 30 years, was charged by the U.S. Department of Labor on one count of felony theft, take/use/transfer movable property without consent. He has been accused by eight former employees of diverting $13,699,17 of payroll deductions that had been intended for employee savings plans. The alleged criminal activity was documented between Oct. 21, 2005 and Dec. 31, 2008. Details on the plea agreement could not be released, Povolny said.

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