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Parrot Cellular pays $4.2M to stop EBSA squawking

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in Compensation and Benefits,Human Resources

Executives of Parrot Cellular, a Cen­­tral Valley and Bay Area cellphone retailer, have agreed to pay just under $4.2 million to the company’s em­­ployee stock ownership plan (ESOP) following a probe by the U.S. Depart­­ment of Labor’s Employee Benefits Security Administration (EBSA). Investigators found that company owners had the plan buy company stock at highly overvalued rates.

Under the settlement, Consult­­ing Fiduciaries, an Illinois company respon­­si­­ble for the ESOP’s management will pay $2 million to the plan. Entrepreneurial Ventures, Inc. operates Parrot Cellular stores. The company’s principal owner and two executives will collectively pay $1.5 million to the fund, and the owner will personally pay an additional $681,818 to make the plan whole.

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