March 25, 2009

Labor Dept. sues Michael Vick

The U.S. Labor Department is suing former NFL quarterback Michael Vick and others in a bankruptcy court in Newport News, Va., to recover pension assets.

Vick owned a celebrity marketing enterprise called MV7 with financial advisers Mary Wong and David Talbot.

He filed for Chapter 11 bankruptcy on July 7, 2008, but the suit claims he and the others violated federal employee benefits law by making a series of prohibited transfers from a pension plan for nine current and former employees as of October 2008.

The plan assets were partially used to help pay the criminal restitution imposed upon Vick after his conviction for unlawful dog fighting as well as his attorney in the bankruptcy cases.

This action sends a message that the Labor Department will not tolerate the misuse of plan money and will take whatever steps necessary to recover the assets owed to eligible workers, Secretary of Labor Hilda L. Solis said Wednesday in a statement.