Compliance April 3, 2006

PBGC Adds Appeals Board Decisions to Web Site

April 3, 2006 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) has added to its Web site an inventory of Appeals Board decisions.
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The full-text, searchable database currently includes about 140 decisions rendered since October 1, 2002, redacted for public viewing, according to the announcement.

The PBGC said the new database allows workers, retirees, and pension practitioners to access and print decisions that are significant or relevant to participants in terminated pension plans administered by the agency.

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Users can access decisions either through a keyword search or by clicking on dropdown topics list.

The database is  here .

Administration April 2, 2006

Probes Launched Into Alleged Wachovia Trading Infractions

February 16, 2005 (PLANSPONSOR.com) - Wachovia Securities and the NASD have opened investigations into one of the brokerage's Westlake Village, California offices over possible stock trading abuses.
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According to the Los Angeles Times, NASD has launched an investigation into the possibility that traders had opened fictitious accounts to reap arbitrage profits off company stock. Wachovia announced that it was looking into the situation as well.

An anonymous letter sent to Wachovia warning the company that numerous traders at the office under investigation had opened fake accounts to take advantage of a company stock purchase plan in which shares are directly sold to investors at discounts of up to 5%, according to the Times. The traders would allegedly buy the shares at the discount, and through the accounts, turn around and sell them at market value, profiting from the spread between the two prices.

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Such accounts may violate regulations regarding “rules of fair practice”, the Times suggests. The creation of fictitious accounts also is against NASD rules, according to the paper.

The traders also allegedly traded in volumes exceeding the typical discount programs, according to sources. These limits are usually between $5,000 and $10,000 a month, according to the Times and the traders may have violated Wachovia’s stated limits.

Many of the stocks traded were real estate investment trust (REIT) shares, according to sources.

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