Compliance November 30, 2005

VA Company Owner Charged with Filing False 5500s

November 30, 2005 (PLANSPONSOR.com) - A federal grand jury has indicted the owner of VPC Group Inc. of Virginia Beach, Virginia on five counts of filing fraudulent Form 5500 plan reports.
Reported by

A news release from the US Department of Labor (DoL) said Gary Lee Beavers was charged with preparing and filing the false 5500s for the Equipment Depot Inc. Employees Salary Reduction Plan & Trust for plan years 2000 through 2003, and the Glass Baron Inc. 401(k) Profit Sharing Plan for plan year 2001.  

The indictment alleges that Beavers caused the plans to falsely report that financial statements and schedules were audited and received an opinion as to accuracy by an independent qualified public accountant, as required by the Employee Retirement Income Security Act (ERISA).

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He also allegedly used the name of a specific certified public accountant, knowing that the accountant had performed no audits and had prepared no accountant’s opinions.   The certified public accountant was unaware that his name had been used in this manner.   If convicted, Beavers faces a maximum of 25 years in prison.

Benefits November 29, 2005

Conversation About Hitler Sparks Lawsuit

November 29, 2005 (PLANSPONSOR.com) - A former worker is suing the Dana-Faber Cancer Institute alleging retaliation after she complained of an insulting conversation with a co-worker.
Reported by

The Associated Press reports that Aliana Brodmann von Richthofen testified that a co-worker, who knew much of her family had been killed in the Holocaust, said she admired Adolf Hitler and that ‘He was an admirable leader.’ Von Richthofen alleges that when she complained to supervisors about the conversation, she was demoted and eventually forced to resign.

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Von Richthofen is suing the institute, two former supervisors and a human resources executive, according to the AP. She is seeking unspecified compensatory and punitive damages, as well as back pay and forward pay against the cancer institute.

An attorney for the Dana-Farber Cancer Institute said that the institute moved the two women out of the small office they shared and gave them separate workspaces so they would not have to interact with one another. ”They were conscientious, effective, and responsive to Miss von Richthofen’s complaint,” James Horgan said.

A trial in the case opened this week in Norfolk (Massachusetts) Superior Court.

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