A nearly six-year-long legal battle over the mismanagement of more than 400 death benefits plans has come to an end, with a Philadelphia federal court district judge entering a $39.8 million judgment in favor of the workers who had invested in the plans.
The Department of Labor said Wednesday that the defendants – John J. Koresko V, the companies he controlled and his former associate, Jean Bonney – had been at the helm of a 12-year-long scam in which they diverted tens of millions of dollars from plans which provided death benefits to participants nationwide.
According to the DOL, the defendants diverted the funds through 21 accounts using 18 entities at eight banks. The government filed suit against the defendants in 2009.
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