Agency counterclaims against “faithless servant”

When Joel Levy and his wife sued his former employer, the Young Adult Institute (“YAI”), for violations of the Employee Retirement Income Security Act and state law, YAI counterclaimed for damages as a faithless servant and from breach of his fiduciary duty resulting in excessive compensation and government enforcement actions against the agency.  A federal District Court in New York City has upheld a Magistrate Judge’s decision denying Levy’s motion to dismiss the counterclaims.