I can understand this guy being prosecuted. He has the right to his day in court. However, on what basis can "our" government just go in and seize nearly 1/2 a mil out of a company's bank account? Its not like he's been proven guilty yet in a court of law. These "government seizures" seem to be getting out of hand in my mind.
Since he was falsifying the welding papers, I would say he was pocketing the difference of what he had listed as salary and not paying taxes on his stolen money. Therefore I would bet it was an IRS seizure and it would be legal.