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Release Date: 03/28/2003
Release Number: BOS 2003-053
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Bronx, New York - The U.S. Department of Labor filed a lawsuit on
March 27, 2003 against the trustees of the pension and welfare plans of Local
2682 of the United Brotherhood of Carpenters and Joiners of America, of Bronx,
New York, for improperly using plan assets to pay unreasonable expenses in excess of
$900,000. |
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“Abuse of plan assets jeopardizes benefits of American workers and their
families,” said Francis Clisham, Director of the New York Regional Office of
the Employee Benefits Security Administration. “The department will
aggressively enforce the law to protect benefit promises.” |
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Named as defendants in the lawsuit are current and former trustees Anthony
Prezioso, Joseph Cruz, Manuel Dos Santos, Edward Orlando, and Mark Goldsmith,
Local 2682 Building Corp. and Local 2682 of the United Brotherhood of Carpenters
and Joiners of America. Prezioso was the plan administrator. Cruz was a trustee
of the Local 2682 pension and welfare plans and president of Local 2682. |
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The lawsuit, filed in federal district court in Manhattan, alleges that the
trustees violated the Employee Retirement Income Security Act (ERISA) by paying
Local 2682 an unreasonable amount for services unnecessary or not provided to
the plans. The suit also alleges that the trustees failed to terminate a loan of
pension plan assets to the Building Corporation, which is owned by the trustees;
used the plan assets to pay the salary of a “no show” employee; overcharged
the plans for rent and expenses for space in the building housing the funds and
the union local; and paid to lease a car used in part for business unrelated to
the plans by plan administrator Anthony Prezioso. |
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The department is seeking to require that the defendants reimburse the plans
for losses in excess of $900,000 with interest, to permanently bar Cruz from
serving employee benefit plans in the future, to correct any prohibited
transactions with the plans, and to offset the defendants’ pension benefits to
repay money owed to the pension plan. |
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Employers with similar problems, who are not yet the subject of an
investigation by EBSA, may be eligible to participate in the department's
Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP
requires employers to make workers whole but allows them to avoid EBSA
enforcement actions, civil penalties and any applicable excise taxes. For more
information see www.dol.gov/ebsa. |
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Employers and workers can reach the New York regional office at
212.607.8600
or EBSA’s toll free number, 1.866.444.EBSA (3272), for help with problems
relating to private-sector pension and health plans. |
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The case was investigated the New York Regional Office of the department’s
Employee Benefits Security Administration. |
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Chao v Local 2682 United Brotherhood of Carpenters
& Joiners of America
Civil Action No. 03-CV-2160 |
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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 202.693.7755. |
