US - Stanley Krejci, former COO of The Interface Group, has been jailed for a year and one day for embezzling from his company's pension plan.
He was yesterday sentenced for using the more than US$700 000 to meet the operating expenses of The Interface Group, said assistant secretary of Labor for the Employee Benefits Security Administration, Ann Combs.
“Theft of employee benefit assets is a serious crime and will be prosecuted, “ said Combs. “The Department of Labor is committed to protecting workers' benefits.
During Krejci's tenure at Interface, a small executive search firm located in Washington, D.C, the firm incurred expenses that exceeded company revenues and assets, at which point Krejci began funding firm operations with the founder of Interface’s Plan monies, albeit with his knowledge and authorisation, and which the Plan rules permitted him to take without penalty.
However, Krejci did not inform the founder when others staff’s retirement funds began to be expended in this fashion.
Their combined company pension plan holdings totalled more than $100,000, but Krejci's execution of some 30 checks against plan funds nearly emptied its accounts.
Krejci, pleaded guilty on September 28 last year. The judge also ordered the defendant to pay for the costs of his incarceration, his supervised release, and for attorney’s fees for his two victims.
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