Former President of Michigan Company Found Guilty of Embezzlement

The information presented to the court at the time of the plea showed that between February 2001 and June 2003, while Vallecorsa was heading American International, Inc.,he embezzled approximately $745,000 from two company pension funds in order to keep his financially-depressed company afloat. At the time, Vallecorsa was the sole trustee of both employee pension plans. Vallecorsa faces up to 60 months imprisonment and a fine of up to $250,000. Vallecorsa will also be required to make full restitution to those whose pension funds he unlawfully converted.

United States Attorney Stephen J. Murphy said, “Embezzlement of employee pension funds is a betrayal of the duties that corporate officers owe their company, its workers, and the public.” A sentencing hearing was set by Judge Lawson for 3 p.m. on August 25, 2008. United States Attorney Murphy specifically thanked the Employment Benefits Security Administration of the Department of Labor and the Detroit Office of the Inspector General of the Department of Labor for its hard work in conducting the investigation of this case.