- Thomas Hoey Jr., the owner of Long Island Banana Corp., is facing a federal criminal indictment on charges that he looted employee pensions.
- Patrick Kovarik/Agence France-Presse/Getty Images
Thomas Hoey Jr., the owner of a bankrupt Long Island, N.Y., produce distributor, is facing a federal criminal indictment on charges that he looted his employees’ pension plan.
The charges come on top of another criminal case related to drugs and the death of a sexual partner, for which Mr. Hoey is scheduled to be sentenced this week.
The U.S. Attorney for the Southern District of New York alleged last week in court papers that Mr. Hoey drained an employee profit-sharing plan set up in 2003 of $838,000 by the end of 2012.Mr. Hoey allegedly transferred the money to the company’s corporate bank account to pay wholesalers and his personal credit-card bill, according to the complaint. Charges on the credit-card bill included family vacations and payments to the university that Mr. Hoey’s son was attending.
The indictment alleges that Mr. Hoey “unlawfully, willfully, and knowingly, did embezzle, steal, abstract, and convert to his own use, and to the use of another, moneys, funds, securities, premiums, credits, property, and other assets of an ‘employee welfare benefit plan or employee pension benefit plan.’”