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. Levy worked for YAI, a nonprofit providing services to people with developmental disabilities, for nearly 40 years, including serving as Executive Director and then CEO from 1979 to 2009. He was directly involved in...