OWOSSO — The owner of Val’s Pizza agreed June 3 to plead guilty to a reduced misdemeanor larceny charge for embezzling more than $20,000 from Capitol Bowl when his business was located inside the bowling alley.

Daniel Matthies, 49, of Owosso, was originally charged by prosecutors in March with felony embezzlement of $20,000-$50,000 from Capitol Bowl following an investigation by Owosso Police. Officials said that the embezzlement began in 2012 and continued after Matthies moved his business to an independent location further south on Washington Street in October 2016.

Matthies was arraigned March 11 in 66th District Court by Judge Terrance Dignan and pleaded not guilty at that time. He was given a $5,000 personal recognizance bond and has been free while awaiting disposition of the case.

According to the charging document, Matthies, acting as “an employee of Trecha Matthies Enterprises LLC, did convert to his own use, without the consent of his principal, Gordon Food Service rebate checks, totaling over $20,000 but less than $50,000.”

As part of the agreement, Matthies will plead to one count of misdemeanor larceny ($200-$1,000), will be placed on probation, and be required to pay $17,500 in restitution and $3,200 in court costs and fines (which covers the cost of a forensic audit by investigators).

Court documents do not indicate how long the period of probation will be, or whether Matthies will be required to serve any period of incarceration as part of the plea agreement. As part of the agreement, Matthies will be ordered to have no contact with any employee of Capitol Bowl and is prohibited from entering the bowling alley premises.

Had Matthies been convicted of the original felony embezzlement charge, he faced the possibility of significantly more prison time — up to 10 years in prison and/or a fine of $15,000 or three times the amount embezzled, whichever is more.

With the plea agreement, however, the lesser misdemeanor larceny charge carries a maximum of 93 days in jail.

Sentencing for Matthies is scheduled in District Court for 10:30 a.m. July 1 before Judge Ward Clarkson.

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