Atlanta, Georgia - The U.S. Labor Department has
obtained a court order requiring Henry A. McLarty, the former head of
Atlanta-based Clarion Resources Communications Corp., to restore $17,280
in losses and interest to Clarion’s retirement savings plan.
“This action underscores the Labor Department’s
commitment to hold accountable those who are entrusted with the assets of
workers’ retirement plans,” said Howard Marsh, director of the Atlanta
regional office of the Employee Benefits Security Administration (EBSA).
“The law states that plan fiduciaries have a responsibility to manage
the money set aside in retirement plans for the benefit of employees and
their families.”
The department sued Clarion Resources Communications
and McLarty, former owner and a plan fiduciary, in October 2004 for
violating the Employee Retirement Income Security Act (ERISA). The
defendants failed to remit employee contributions, as required, to the
plan at various times between January and July 2001. They also failed to
obtain a fidelity bond as required by law.
Entered in U.S. District Court in Atlanta, the judgment
also permanently bars McLarty from serving as a fiduciary to any plan
governed by ERISA. The department previously obtained a judgment against
Clarion.
Clarion Resources Communications, a telecommunications
firm, served as the plan administrator. The profit sharing plan covered 39
participants and had assets of $45,665 as of December 31, 2000.
Employers with similar problems, who are not yet the
subject of an investigation by EBSA, could be eligible to participate in
the department’s Voluntary Fiduciary Correction Program. Participation
in the program requires employers to correct violations of the law but
allows them to avoid EBSA enforcement actions and civil penalties, as well
as excise taxes. For more information about the Voluntary Fiduciary
Correction Program, see www.dol.gov/ebsa.
The case resulted from an investigation conducted by
EBSA’s Atlanta regional office. In fiscal year 2004, EBSA achieved
record monetary results of $3.1 billion related to the pension, 401(k),
health and other benefits of millions of American workers and their
families. Employers and workers can contact the regional office at
202.452.2156 or EBSA’s toll free number, 1.866.444.EBSA (3272), for help
with problems relating to private-sector pension and health plans.
(Chao v. Clarion Resources Communications Corp.)
Civil Action No. 1:04-cv-02934RWS |