Employees of Emergi-Lite Co., Westbrook, Conn., yesterday received restitution of the $2 million in assets embezzled from their 401(k) plan by Gary Moore, the company's outside investment manager, record keeper and trustee.
The money came from a combination of various insurance policies the company had, according to Francis Creighton, aide to Rep. Sam Gejdenson, D-Conn., who had introduced legislation earlier this year requiring small retirement plans to ensure their assets are held by banks or other qualified financial institutions, and to give participants full disclosure on how their pension assets are invested.
The restitution came a day after the end of a Labor Department investigation into the matter, and a day before Mr. Moore was scheduled for sentencing. Employees are also suing the company for more than an additional $1 million in investment earnings they had to forgo this year, according to Mr. Creighton. The Labor Department is expected to issue regulations mirroring Mr. Gejdenson's legislation, Mr. Creighton said.