August 19, 2013 (PLANSPONSOR.com) – An investment adviser has been ordered to restore plan losses, incentive fees and penalties for several employee benefit plans.
The U.S. Department of Labor (DOL) obtained approval of four
consent judgments by the U.S. District Court for the Northern District of
California in which Zenith Capital was ordered to pay $602,018 in restitution for plan
losses and restoration of the improper incentive fees, plus lost opportunity
costs and penalties payable to the department, and three individual defendants
were ordered to restore $503,385 in plan losses, incentive fees and penalties.
In addition, the three individuals are permanently barred
from serving or acting as discretionary fiduciaries, investment managers, or
trustees or administrators to a plan covered by the Employee Retirement Income
Security Act (ERISA). The consent orders require the defendants to meet certain
disclosure and training requirements in order to serve as consultants or
investment advisers to ERISA-covered plans.
The defendants named in the case of Harris v. Zenith Capital
LLC are Rick Lane Tasker, Martel Jed Cooper and Michael Gregory Smith,
individually and as fiduciaries and service providers. Zenith Capital LLC, an
investment advisory firm located in Santa Rosa, California, was also named as a
defendant in the case.
According to the DOL’s Employee Benefits Security
Administration (EBSA), the defendants were alleged to have breached their
fiduciary duties and engaged in prohibited transactions when they placed 13
employee benefit plans into Global Money Management (GMM), a hedge fund that
collapsed and went bankrupt.
The DOL claimed Zenith Capital and the
individual defendants placed the plans in the high-risk hedge fund despite the
fact that the plans were not qualified, accredited investors, and failed to
conduct prudent due diligence on GMM or its suitability as an investment for
the plans. They also failed to disclose GMM’s ownership interest in Zenith
Capital and their receipt of incentive fees from GMM for the plans that it
placed into GMM. The general partners of GMM were convicted of mail and wire
fraud in connection with GMM.
The full text of the consent judgment and order (docket
number: 3:08-cv-04854-EMC) can be found here.
August 19, 2013 (PLANSPONSOR.com) – Last week I asked NewsDash readers how comfortable they would be with someone from the workplace “friending” them on Facebook.
The
readers who responded were nearly evenly split between those who manage other
people (48.3%) and those who do not (51.7%). The majority said they would be “very
uncomfortable” being friended by their managers (63.5%), people they manage
(62.3%), clients (61.3%) and vendors (61.9%).
Nearly 32% each indicated they would be “very uncomfortable” or “somewhat
uncomfortable” if a co-worker friended them.
One-quarter
of responding readers would be somewhat uncomfortable if their managers
friended them, as would 18% of readers if the people they manage friended them.
Nearly 23% reported they would be “somewhat uncomfortable” friended by a
client, while 17.5% said the same about being friended by a vendor.
The
most comfort with extending a “friendship” outside of work would be among
co-workers, according to the survey responses. Twenty-seven percent indicated
they would be “somewhat comfortable” if a co-worker friended them on Facebook,
and nearly 8% would be “very comfortable.” Eight percent would be very or
somewhat comfortable with a manager friending them, as would 11.5% if someone
they managed did so. Nearly 10% expressed some comfort level with being
friended by a client, and more than 11% expressed some comfort level with being
friended by a vendor.
In verbatim
responses, most agreed Facebook is not for connecting with people in the
workplace; many pointed out that LinkedIn is for that. Some readers indicated
comfort depends on the content that is posted on Facebook. Editor’s Choice goes
to the reader who said: “This issue is one of the main reasons that I’m a
Facebook holdout. Many lunchtime conversations involve mocking co-workers’
Facebook postings.”
Verbatim
Many
of my friends are former co-workers or managers, but I try not to friend
current co-workers. We see enough of each other at the office.
I
try to be very guarded on who I allow on my Facebook page. The only exception I
have is my current boss because we worked together in a prior life and
connected while we were not working together (neither one of us are frequent
posters on Facebook any way). Other than that, Facebook is only for close
friends and family. For friends at work, I make sure I know them very, very
well before accepting any invitations. LinkedIn is where all other professional
connections can be made including vendors.
That's
what LinkedIn is for
It
all depends on who. Some of my best friendships are formed at work so there is
a point when a coworker becomes a personal friend. Until that time, however,
please don't friend me on FB.
I
am "friends' with managers in my company, just not my direct supervisor.
Although I never put on FB anything I would not say in person, I do think that
out of work I would prefer a level of privacy.
I
make it a rule to not be 'friends' with people that I work with. My Facebook
page is for family and friends outside of the workplace.
Personal
life and professional life just do not mix. YIKES!
As
a general rule, people learn how boring I am. I was shocked to receive a
request from my boss's boss. It seemed imprudent to "deny" the request
- and I'm finding he is rather a pest, prone to making snarky comments. But
what can you do?
This
issue is one of the main reasons that I'm a Facebook holdout. Many lunchtime
conversations involve mocking co-workers' Facebook postings.
I
think only if there are personal friends outside of work...maybe not even then.
The whole thing makes me feel like living in a small town....everybody all up
in your business! Ick!
Current co-workers,
managers, or people I manage: NEVER. While friendly, HR doesn't get to have
"friends." After termination: of course!
Verbatim
(cont.)
Not
on Facebook- too public, no privacy-ever and Facebook owns you once you post.
I
prefer not to mix work with Facebook.
I
like to be selective about what information I share with people at the
workplace.
People
of the same age group and "rank" within a company I feel comfortable
friending on Facebook, but superiors or subordinates is not a good idea IMHO.
No
problem, unless I am upset at something at work and then could be a problem!
They
already know everything about you at work do you really want them to know
everything else about you? NO
I
don't even have a Facebook account, so I don't have to worry about privacy from
coworkers.
Not
a good career move.
I'm
just uncomfortable with Facebook. It's one thing to say something stupid or
inappropriate in a room full of your friends, but to be able to post a photo or
comment on the internet that you may later regret... it's a responsibility that
some folks just shouldn't be allowed to have! Like Uncle Ben said in
Spider-man: With great power comes great responsibility. 'Nuff said.
I already know plenty
about the people I work with. I don't really care to know more about their
person lives, or they mine.
Verbatim
(cont.)
Not
on Facebook. Like my privacy.
I
had a Facebook account but when I realized I only accepted friend requests for
family, I closed the account. I am old school in that when I go home from work,
I don't invite coworkers, managers, vendors or clients to join me, even
electronically!
LinkedIn
should be used for any professional contacts in the workplace or with clients
and vendors, not Facebook. In my mind, Facebook is for friends and family.
Just
say no. That's what Linkedin is for.
I
prefer to use LinkedIn for these types of relationships and keep Facebook
limited to family and very close friends.
business
contacts are not "friends" by definition. Personal and business
should always be segregated.
I
have strict rules: Facebook is personal friends only. LinkedIn is for
professional contacts. No exceptions.
did
it. big mistake. Unfriending was painful.
I
vow to never utter the words..."when I was on Facebook"...Facebook is
for my teenage kids, it is not for adults. It is a complete waste of people's
time and it generally leads to problems. General rule should be that Facebook
is only for people under the age of 30.
I have a strict
policy to not interact with co-workers (of any level) on FB. I do connect with
them on LinkedIn.
Verbatim
(cont.)
I
try very hard to keep my Facebook page limited to my real friends and steer
work mates towards my LinkedIn page. I don't want my staff or manager making
comments about something I did on my personal time - I'll share what I want
when I want
Being
in HR I don't believe that it's appropriate to be "friends" with
employees. I need to remain a neutral party.
IMHO,
work and FB friending do not mix well. I give my best efforts to the company I
work for, and at the end of each day I have made money for it...a great business
exchange. I like meeting up with coworkers after work or special events...in
person. I protect my personal stuff from everything else. Although I rarely use
social media to connect with people, I consider it an extension of my personal
life, which is off limits to work and those connected to that work.
I
make it a practice to not friend anyone connected to my work life.
I
am ok with being "friended" by people at work I'm actually
"friends" with, which means about 2 or 3. As for the rest or a boss -
don't even bother asking. Thankfully, they haven't!
I'm
old enough to remember "party-line" telephones... seems we haven't
made much progress.
We
can be friends when one of us leaves.
I
don't accept friend requests from anyone I work with or do business with -
that's what Linked In is for - all business relationships are connected on
Linked In.
A
former boss friended me on FB. I didn't accept until he left the company.
Although I rarely post to FB, also having your boss know what you're up to
outside of work is just WRONG. I also don't want to know what my subordinates
are up to outside of work.
It's
not all or nothing. My comfort level is completely dependent on the individuals
involved, not their relationship to me via work. A lot too depends on how one
uses Facebook. Remember the old maxim about things you don't get into at work -
sex, religion and politics? If you do that in Facebook, it's just as
potentially harmful to those relationships. And don't think your boss won't
hold your politics against you just as much as those inebriated pictures from
your senior year of college!
NOTE: Responses reflect the opinions of
individual readers and not the stance of Asset International or its affiliates.