The U.S. Department of Labor is investigating missing money from employee 401(k) accounts at Reston Construction, adding to mounting legal troubles for the Northern Kentucky company.
The probe surfaced through newly unsealed Kenton County court documents, where entrepreneur Christopher Cook is suing Reston over a failed $3 million acquisition deal involving seven of his companies sold in 2022. Reston countersued, accusing Cook of misrepresenting his businesses’ finances and violating a non-compete clause.
Judge Mary Molloy unsealed the case on Oct. 9, setting a January trial date. Earlier, she ruled in Cook’s favor on key points—finding that Reston defaulted on a $2.4 million promissory note and ordering the company to pay $1.7 million.
However, court depositions revealed deeper financial issues inside Reston. In one exchange, Reston CEO Kyle Motycka admitted that money deducted from Cook’s 401(k) “wasn’t being put in” consistently. When asked where the funds went, Motycka responded, “I don’t know… it was used for general operations, I’m assuming.”
Federal law mandates that employers deposit 401(k) deferrals by the 15th day of the following month, and misusing those funds can lead to civil or criminal penalties.
Former Labor Department investigator Todd Zinser said, “That money belongs to the plan, not the employer… If he doesn’t remit it, that’s where the civil and criminal consequences come into play.”
The Department of Labor’s Employee Benefits Security Administration recovered nearly $1.4 billion in misdirected benefit contributions nationwide in the past year. It’s unclear how much is missing from Reston’s accounts, but internal emails obtained by former employees suggest at least $42,808 in uncredited contributions and company matches through August 2025.
The I-Team also reported that Reston faces 22 lawsuits totaling $2.7 million from vendors, employees, and customers. In depositions, Motycka confirmed that federal officials have contacted him for “backup and detail” about the 401(k) issue.
The Reston-Cook dispute highlights the risks that can follow business acquisitions gone wrong. While Cook claims Reston defaulted on payments and left him to cover $350,000 in company debts, Reston accuses Cook of overstating his firms’ finances before the sale.
Reston has since sold assets from two subsidiaries, Cru Cutters and Landworx, and shut down Kramer Pools and BBG Electric. Cook’s former home-building firm, Beaumont Homes, has only one active project and “zero, or less than zero” in its bank account.
The Department of Labor’s investigation remains ongoing. Employees who suspect improper 401(k) handling can contact the Employee Benefits Security Administration at 1-866-444-3272 for assistance.
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