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’sSecurity 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’swill 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.