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Release Date: 11/18/2002
Release Number: 54
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Detroit, Michigan - Recent lawsuits by the U.S.
Department of Labor against three trustees of the Mortgage Corporation of
America’s Employees’ Retirement Plan have recovered a total of $15,420
in interest (lost opportunity costs) the trustees owed to the plan. The
Southfield, Michigan company is currently in Chapter 11 liquidation
bankruptcy. |
In the latest action in a series of legal proceedings,
the department received approval November 5 from the bankruptcy court in
trustee Keith D. Pietila’s personal bankruptcy case allowing an offset
of his own plan account to recoup $5,420 -- lost opportunity costs he owed
to the plan. This followed a September 24, default judgment obtained by
the department in its district court case against him. |
A separate consent judgment was obtained on October 31
against trustees Patrick D. Quinlan and Lee P. Wells. It allowed each of
their personal plan accounts to pay $5,000 in lost opportunity costs,
which they owed separately to the plan. |
As of November 7, the plan had 428 participants and
$3,129,275 in assets. It may now be terminated and its assets distributed
consistent with the Employee Retirement Income Security Act (ERISA). |
In April 2001, the bankruptcy court approved the
Secretary of Labor’s claim for repayment of almost $170,000 to the plan.
That payment, made a month later, represented voluntary employee
contributions of $150,774 withheld from employees’ paychecks, voluntary
employee loan repayments of $9,640 and employer matching contributions of
$9,513 – all not previously paid to the plan. |
The Cincinnati regional office of the Labor Department’s
Pension and Welfare Benefits Administration (PWBA) conducted the
investigation resulting in the case. |
Employers and workers can contact the Cincinnati office
at 859.578.4680 or PWBA’s Toll-Free Employee & Employer Hotline
number at 1.866.275.7922 for help with problems relating to private-sector
pension and health plans. |
(Chao v. Patrick D. Quinlan, Lee P. Wells and Keith D.
Pietila
Civil Action No. 02-70844 Keith Pietila and Judith Pietila
U.S. Bankruptcy Court Case No. 02-42002-swr) |
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 202.693.7755. |