Compliance February 9, 2012

DoL Files Lawsuit Against Company for 401(k) Fraud Scheme

February 9, 2012 (PLANSPONSOR.com) – The U.S. Department of Labor (DoL) filed a lawsuit against Dynasty Construction Inc. and its owner for breach of fiduciary duty with respect to the company’s 401(k) plan.

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According to the suit, Bethesda, Maryland-based Dynasty Construction Inc. and owner John J. Barrett III had more than $775,000 from the 401(k) plan invested in a fraudulent scheme in 2006, in violation of the Employee Retirement Income Security Act (ERISA). This amount represents nearly all of the assets in the accounts of the 19 plan participants as of the end of 2005.

The suit resulted from an investigation by the department’s Employee Benefits Security Administration (EBSA) and was filed in the U.S. District Court for the District of Maryland. It alleges that the defendants failed to adequately or prudently research the credentials of the financial representative they retained and the investment of plan assets in the Transcontinental Airlines Employee Investment Savings Account, a fraudulent scheme orchestrated by Louis Pearlman, who is serving 25 years in federal prison.

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“These acts have jeopardized the retirement security of former Dynasty employees by those charged with the responsibility of protecting workers’ benefits,” said Phyllis C. Borzi, assistant secretary of labor for employee benefits security. “The Labor Department will not stand for it, and we will take all actions necessary to make sure workers receive their hard-earned benefits.”

The suit seeks to restore to the plan all losses, including interest and lost opportunity costs. It also would require the defendants to provide all books, documents and records relating to the finances and administration of the plan, as well as remove the defendants as fiduciaries of the plan and any other employee benefit plan. The defendants would be permanently enjoined from acting directly or indirectly in any fiduciary capacity with respect to any employee benefit plan and from exercising any custody, control or decision-making authority with respect to the assets of any employee benefit plan covered by ERISA. Finally, the suit seeks the appointment of an independent fiduciary to manage and administer the plan.

Dynasty Construction Inc. ceased operations in 2007.

The case is Solis v. Dynasty Construction Inc. et al. Case No. 8:12-cv-00249-DKC. 

Benefits February 9, 2012

Love is in the Air in the Workplace

February 9, 2012 (PLANSPONSOR.com) – Thirty-eight percent of workers said they have dated a co-worker at least once over the course of their career, according to a survey by CareerBuilder.

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Seventeen percent of survey respondents reported dating co-workers at least twice. Thirty-one percent said their office romance led them to the altar.

While the majority of relationships developed between workers in comparable job levels, 28% of workers who dated a co-worker said they have dated a superior in the company hierarchy, and nearly one-in-five (18%) admitted to dating their boss. Women were more likely to date someone higher-up in their organization (35%) compared to 23% of men.

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Hospitality leads the top five industries for office romances, with numbers significantly higher than the national average:

•  Hospitality—47% dated a co-worker;

•  Financial Services—45%;

•  Transportation & Utilities—43%;

•  Information Technology—40%; and

•  Health Care—38%.

More than one-in-four workers (26%) reported that what someone does for a living influences whether they would date that person. Five percent of workers said someone broke up with them because either their job required too many hours at the office, they didn't make enough money or the person didn't like their line of work.

While the majority of workers tended to date people in different professions or functions, nearly one-in-five workers (19%) reported that they are more attracted to people who have a similar job.  

Social settings outside of the office were cited most often in regard to workers connecting on a romantic level. Running into each other outside of work (13%), happy hours (12%), lunches (11%) and late nights at work (10%) were among the most popular catalysts for dating co-workers.

Most workers who have had office romances said they were open about their dating situation. Thirty-seven percent reported they had to keep the relationship under wraps. 

This survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder among 7,780 U.S. workers (employed full-time, not self-employed, non-government) between November 9 and December 5, 2011.

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