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Release Date: 05/16/2002
Release Number: III-02-05-17-049-MD
Contact Name: Gloria Della
Phone Number: 202.693.8666
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Philadelphia, Pennsylvania - A federal court in Greenbelt,
Maryland ordered the former
independent fiduciary of the Bauer Associates, Inc. 401(k) plan in Bowie,
Maryland to
pay $2,000 to the plan and permanently barred him from serving as a trustee to
any plan governed by federal employee benefits law, according to a consent
judgment obtained by the U. S. Department of Labor. |
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“This action reaffirms our commitment to protect the hard-earned benefits
promised by employers,” said Mabel Capolongo, Director of the Philadelphia
Regional Office of the Pension and Welfare Benefits Administration. |
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A lawsuit, filed simultaneously with the judgment on May 10, states that John
MacLean, the independent fiduciary appointed by the court to oversee the plan in
1998, allegedly colluded with defendant Thomas Bauer to reduce the amount of the
debt owed by Bauer to the plan. The suit contends MacLean told Bauer he
would not answer Labor Department questions regarding the payments. He
also received reimbursement for time spent on the collusion with Bauer. In
addition, MacLean failed to timely deposit for nine months the 1999 check of
defendant Waters and did not pursue collection of the debt owed that year by
Bauer. |
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In 1998, the department obtained separate consent judgments with plan
officials Thomas Bauer and William Waters. The judgments, among other
things, required the defendants to repay $161,280 over five years. |
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Bauer Associates sponsors the 401(k) plan for 78 participants and had
$545,304 in assets as of December 31, 1998. The plan allows elective
contributions to be deducted from employees’ paychecks every two weeks. |
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This suit, filed in federal district court in Baltimore,
Maryland was investigated
by the Washington, D.C. District Office of PWBA into alleged violations of ERISA.
Employers and workers can contact the regional office at 215.861.5300 or PWBA's
Toll-Free Employee & Employer Hotline number: 1.866.275.7922, for help with any problems relating
to private-sector pension and health plans. |
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(Chao v. MacLean
Civil Action No. 02- CV- 1652) |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7775. |
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