Imprisoned Attorney Loses Appeal Against Labor Department

Disbarred attorney and embattled benefit plan promoter John J. Koresko failed to convince a federal appeals court to overturn decisions that ultimately led to him being imprisoned.

Koresko was properly held in contempt for failing to turn over benefit plan assets he allegedly used to purchase real estate on the Caribbean island of Nevis, the U.S. Court of Appeals for the Third Circuit held March 23. Koresko said he was wrongly imprisoned for failing to pay a debt, but the court disagreed, explaining that he was imprisoned for failing to comply with a valid court order, which is permissible.

The decision is a victory for the Labor Department, ...