A Canton employer was recently sentenced to a term of probation, home confinement,
and community service for embezzling over $35,000 from the pension plan of a
defunct company he formerly operated.
William J. Svatos was president and principal owner of Graphic Planet, Ltd.,
which was in business from approximately March 2000 through September 2002 in
Carrollton, Ohio. The company experienced serious financial problems starting
around December 2001. During December 2001 through September 2002, Svatos embezzled
approximately $35,327 of the assets of the company's 401(k) Profit Sharing
Plan by using plan contributions for Graphic Planet's business operations.
This was a violation of his fiduciary duty as plan trustee and custodian.
In addition to the probation, home confinement, and community service, Svatos
was also fined $2,000 and ordered to make full restitution of the embezzled
funds to the victimized plan participants.