Michael Vick coughs up $416K to settle claim he raided retirement plan

Philadelphia Eagles quarterback Michael Vick has agreed to repay at least $416,000 that he is accused of illegally withdrawing from a pension plan.

The Labor Department said Wednesday the payment settles a lawsuit against Vick for making transfers from the plan sponsored by a celebrity marketing company he once owned.

It was the latest step in Vick’s effort to rebuild his life and settle his financial problems since his release in July from federal custody after serving 18 months for running a dogfighting ring. In August, a judge approved Vick’s plan to emerge from bankruptcy protection and repay his creditors $20 million.

The former Atlanta Falcons star was accused of withdrawing more than $1.3 million from the pension plan of the company, known as MV7. The department alleged that Vick improperly used the money to help pay penalties imposed on him after his dogfighting conspiracy conviction.

Vick also will pay a civil penalty of more than $80,000 and forfeit any rights to benefits from the plan, according to the consent judgment filed in federal court in Newport News, Va.

MV7 filed for Chapter 11 bankruptcy on July 7, 2008. It sponsored a defined benefit retirement plan for nine current and former employees as of October 2008.

Phyllis Borzi, assistant secretary for the Labor Department’s Employee Benefits Security Administration, said the settlement “ensures that these participants will get the plan assets owed to them.”

Vick’s lawyer, Paul Campsen, did not return a message Wednesday.

The quarterback once was the highest paid player in the NFL. But his legal problems plunged him into financial ruin and bankruptcy. He is now on more secure financial footing. The Eagles gave him a one-year deal for $1.6 million with a team option for a second year at $5.2