Guild Concepts Ltd., White Plains, N.Y., and its president, Victor Ayala, must pay $1.5 million into the companys pension plan in a settlement of a lawsuit that charged the company with violations of ERISA provisions, according to the U.S. Department of Labor. The lawsuit filed by the Labor Department alleged that the companys controller, Philip Liu, failed to put more than $200,000 in employee contributions into the plan and transferred $996,000 of plan assets into the companys general account. The suit alleges that Mr. Ayala did not monitor or prevent Mr. Lius actions. Mr. Liu pleaded guilty to embezzlement and is serving a 57-month prison sentence. The asset size of the plan could not be immediately learned.
Hes serving five years, and personally, I dont think thats enough time, Mr. Ayala said of Mr. Liu. Its been a tragedy for us.