Contractor pleads guilty in $745,000 American International Inc. pension fund theft
mlive.com | 5/16/08 | Associated Press
DETROIT -- A Detroit-area contractor has pleaded guilty to accusations of stealing about $746,000 from his company's pension funds. Frank Vallecorsa's company, American International Inc., handled tens of millions of dollars in Detroit and Wayne County contracts. U.S. Attorney Stephen Murphy says the Grosse Pointe Farms resident looted two company pension funds to save his failing company.
The 77-year-old faces up to five years in prison and a $250,000 fine at his Aug. 25 sentencing. Defense attorney Thomas Cranmer says Vallecorsa accepts the penalty and hopes to repay the funds despite his advanced age. Vallecorsa last year agreed to pay $1.5 million and accept a lifetime ban on receiving federal contracts to settle civil fraud allegations.