State Superior Court Judge Patricia DelBueno Cleary ordered Frank Knight – the sole shareholder of Knight Contracting and the trustee of the company’s pension fund – to pay $560,770 in restitution to his employees’ pension plan after a trial court jury convicted him of stealing from the fund.
Knight set up the pension program in 1999.
According to the newspaper, the prosecutor’s office and the U.S. Department of Labor received complaints in 2004 from several current and former employees of the company that Knight had not been depositing the money. Both entities launched an investigation and confirmed that Knight had not been depositing money into the pension fund between July 2002 and December 2003, which amounted to more than $600,000 in employee wages.
Since then, Knight gave back some of the money, but the pension fund still remains more than $560,000 underfunded.