Katun Corp.

Katun paid the U.S. government $11 million in criminal fines for its role in a mail and wire fraud scheme. Current and former employees filed a lawsuit and are seeking class action status against the company claiming it coerced them, as employee shareholders in the privately held company, to pay the company for pro-rated portions of the $11 million fine. The suit claims Katun threatened to hire collection services if employees did not pay amounts ranging from $92,000 to $1,350 towards the fine. The lawsuit seeks reimbursement for the employees, plus interest and tax benefits they did not receive when Katun was sold to PNA Holdings in 2002.