FLORENCE, Ky. — The U.S. Department of Labor is looking into money missing from the 401(k) accounts of Reston Construction employees, one of several surprising disclosures in a newly unsealed Kenton County court case.
Northern Kentucky entrepreneur Christopher Cook is suing Reston, alleging it reneged on its $3 million purchase agreement for seven companies Cook sold to Reston in 2022.
Reston alleges Cook misrepresented the working capital of his companies prior to the sale and violated a non-compete agreement he signed as part of the deal.
The case was unsealed Oct. 9 by Kenton County Judge Mary Molloy, who scheduled a January trial date to resolve all remaining issues.
Six days before she unsealed the case, Judge Molloy sided with Cook on two key issues. She ruled that Reston defaulted on a $2.4 million promissory note and ordered Reston to pay Cook more than $1.7 million. She also rejected Reston’s request for a temporary restraining order to keep Cook from competing against Reston.
Reston CEO Kyle Motycka and Cook could not be reached for comment, but one of Cook’s closest friends said the case will have a negative impact on Cook, whether he wins or loses.
“I think there’s definitely a long-term reputational devaluation, for lack of a better term, and I hate that for him,” said Eric Fegan, principal broker and appraiser at Copperwood Realty Group. “Chris will be ok because he’s good at what he does, he’s an honest guy and he had enough core clients that he’ll be able to rebuild.”
Where was the money going?
The WCPO 9 I-Team has been looking into Reston since September, when former employees asked for help because they said the company owed them money.
That led to an I-Team report about 22 lawsuits filed against the company by customers, vendors and employees who claimed they were owed a combined $2.7 million.
But it didn’t reveal much about Cook’s lawsuit, which was filed under seal “out of an abundance of caution” in 2023 to protect “confidential and sensitive business information.”
After the seal was lifted, the I-Team reviewed more than 1,000 pages of court filings and depositions to get a better understanding of the legal controversy.
That included a June 13 deposition in which Motycka admitted money was missing from Cook’s 401(k) account.
Cook’s attorney, Ryan McLane: “That money wasn't being put into his 401(k), was it?”
Motycka: “Not all the time."
McClane: “Where was the money going?”
Motycka: “I don't know.”
McClane: “You don't know? You're the president and CEO of the company. How do you not know where that money's going?"
Motycka: “It was used for general operations, I'm assuming.”
Federal law requires employers to deposit 401(k) deferrals “no later than the 15th day of the month following the payday” in which the deferral happens.
Watch: We looked into the accusations against the company and what the lawsuits could mean for Reston
“That money belongs to the plan, not the employer,” said Todd Zinser, a former Labor Department investigator who now publishes a local podcast, Citizen Watchdog. “The employer is obligated to remit that to the 401(k) plan. And if he doesn’t, that’s where the civil and criminal consequences come into play.”
Employees who suspect improper deferrals can contact the Employee Benefits Security Administration for advice at 1-866-444-3272.
The Labor Department’s Employee Benefits Security Administration recovered nearly $1.4 billion in misdirected benefit contributions in the 12 months ending Sept. 30, 2024. It conducted 729 civil investigations and 177 criminal cases that led to 63 guilty pleas or convictions, according to the department’s annual report on its enforcement activities.
“If there is evidence of potential crime, they’re obligated to report that to the Department of Justice,” Zinser said. “An assistant U.S. Attorney will make a decision as to whether this case is something they want to prosecute.”
The I-Team tried to reach the Labor Department, but an automated email response indicated no response would come until the federal government shutdown is resolved.
It isn’t clear how much money is missing from Reston’s 401(k) accounts, nor how many employees are impacted.
Two former employees provided the I-Team with emails from the company’s retirement plan administrator. The emails state the two employees were owed a combined $42,808 from missing employee contributions and company matches through August 8, 2025. And those amounts do not include interest, which would have to be paid by Reston if the Labor Department intervenes.
“I’m glad to hear you’ve contacted the DOL,” Creative Retirement Systems LLC Administrator Tim McLendon wrote to former Reston employee John Middendorf on Oct. 2. “I do also know a previous investigation was underway, so perhaps multiple more complaints will help make something happen.”
In the July deposition, Motycka did not reveal whether the Labor Department was looking into Reston as a civil or criminal matter.
McLane: “Have you been contacted by the Department of Labor related to this issue?”
Motycka: “I have."
McClane: “What have they asked you?"
Motycka: “For backup and detail, and how we’re approaching the issue.”
McClane: “And what have you told them?”
Motycka: “Everything we know.”
McClane: “Do you have a target letter from the Department of Justice or the Department of Labor?”
Motycka: “I don’t know what that is.”
What went wrong at Reston Construction?
Beyond the 401(k) issue, Cook’s lawsuit is a cautionary tale about what can go wrong when companies are acquired.
Based on their depositions, it’s clear Cook and Motycka had different goals for the transaction.
“I was working a lot of hours and wanted to spend more time with my kids and family,” Cook said in his June 11 deposition.
“I was really excited about the possibility of having a platform to build on across multiple disciplines that we could leverage for everything we did and continue to grow,” Motycka said in his deposition.
Ultimately, they signed a deal in which Cook would help finance the transaction with a $2.4 million promissory note that required payments through January 2028, while working 32 hours a week under a separate employment agreement that paid him $150,000 plus bonuses.
Reston’s founders continued to work full-time in Virginia and California, while launching a private equity firm in April 2023 to raise money for future acquisitions.
But within a few months of closing the deal, things began to fall apart. Motycka questioned the amount of working capital his newly acquired companies were generating. That led to two revisions that altered the amount Cook would have to be paid for the acquisition.
In September 2023, Reston sent Cook a letter asserting that he owed Reston $79,337. Cook filed his lawsuit two months later.
Since then, Reston sold the assets of two companies – Cru Cutters and Landworx – and ceased operations of two others – Kramer Pools and BBG Electric. Cook’s former home-building company, Beaumont Homes, has one active project and “zero, or less than zero” in its bank account, Motycka said in a deposition.
At the same time, Reston began to pay Cook sporadically in 2024 and allegedly violated the purchase agreement by failing to take Cook’s name off company debt. To protect his credit rating, Cook claims to have spent more than $350,000 on debt payments for Reston, money he’ll try to recover when the case goes to trial.
