HUNTERSVILLE – A Huntersville restaurant owner was arrested last week after insurance investigators said he cancelled an employee’s insurance policy but continued to take out premiums from the employee’s paycheck.

Huntersville Police and investigators from the Department of Insurance arrested Joseph Michael Phelan, 42, owner of Friendly’s Restaurant, Jan. 18 and charged him with taking $2,128.98 from an employee’s pay check for insurance premiums even though he allegedly canceled the policy without the employee’s knowledge. It is unclear when the policy was canceled.

The Mecklenburg County District Attorney’s office is seeking restitution for those premiums, a news release said.

Phelan was charged with felony willful failure to pay group insurance premiums, police said. He was released from custody with a promise to appear, the jail log said.