Get more! Sign up for PLANSPONSOR newsletters.
Compliance July 15, 2008
Federal Judge Approves Plan Distribution, Termination
July 15, 2008 (PLANSPONSOR.com) - A federal judge in
Ohio has issued an order allowing the U.S. Department of
Labor's Employee Benefits Security Administration (EBSA) to
distribute more than $600,000 in 401(k) assets to
ex-employees of a Dublin company.
Reported by Fred Schneyer
An EBSA news release said the money will be given out to former workers for American Systems Consulting, Inc.
An EBSA lawsuit against the company and its owners, Cliff and Loree Gallatin, charged that American Systems improperly diverted plan funds to bolster the company’s general accounts. The Gallatins have already paid $100,860, the government announcement said.
The court order designates Larry Lefoldt as independent fiduciary to oversee distributing the rest of the plan assets and then its termination.
The suit resulted from an investigation conducted by EBSA’s Cincinnati regional office.
You Might Also Like:
What Does the End of Chevron Deference Mean for the DOL?
It could mean more lawsuits and overturned rules related to retirement plans.
Non-Insurer Plaintiffs Join ACLI in Fiduciary Rule Lawsuit
FSI and SIFMA are also asking for the Retirement Security Rule to be vacated.
DOL Argues That Class Action Waivers in Plan Agreements Are Unenforceable
Most appeals courts have so far agreed with them.