With Design Files Suit Against 2 Former Officers

In an expected move, With Design In Mind International Inc. has filed a lawsuit against its two top former officers whom the Chatsworth company last month accused of embezzling about $2.1 million.

In a complaint filed Sept. 3 in Superior Court in Los Angeles, the maker of toys and novelty gift items alleged that Steve Zuloff and Barry R. Benjamin collaborated in various schemes that included fraudulent check cashing and diverting company funds to another firm that they and their families controlled.

Zuloff was With Design’s former chairman and chief executive officer, and Benjamin was previously its president and chief financial officer. Both men were ousted in late June after the company, upon a tip from employees, began an internal investigation.

Also named in the suit is Benjamin’s son, David S. Benjamin, formerly With Design’s vice president of sales, and two companies--Beyond Tomorrow Inc. and DKJ Sales Inc.--alleged to be owned and operated by Zuloff, Benjamin and their children.

An attorney in Washington, D. C., who represents Zuloff and Benjamin has declined to comment about the case. With Design, which lost $2.76 million during the nine months that ended June 30 on sales of $2.9 million, said previously that Zuloff and Benjamin have refused requests from the company to make restitution.