|
Release Date: 11/23/2001 Release
Number: 01-236 Contact Name: Gloria Della Phone Number: 202.693.8666 |
|
Atlanta, Georgia - Two subsidiaries of Seagen
Pharmaceuticals, Inc., and the companys president were ordered to restore
$29,974.77 to the Seatrace Pharmaceuticals, Inc. 401(k) plan in Gadsden,
Alabama,
as restitution for using plan assets to pay corporate operating expenses.
|
Under the judgment, entered on Nov. 14 in federal
district court in Birmingham, Alabama, Larry Lefoldt was appointed to distribute
the plans assets to current and former participants and to terminate the
plan. The defendants also were permanently barred from service to plans
governed by the Employee Retirement Income Security Act (ERISA). |
On February 5, 2001, the department sued Seatrace
Pharmaceuticals, Inc., Seatrace DM, Inc., and Oscar Hugh Campbell. The suit
alleged that the defendants failed to forward participants contributions
in a timely manner, did not forward the salary deferrals of participants to the
plan and used plan assets to pay the operating expenses of Seatrace
Pharmaceuticals. |
Seatrace Pharmaceuticals and Seatrace DM, Inc.,
are subsidiaries of Seagen. Campbell is president of all three companies as
well as trustee and administrator of the 401(k) plan. As of
December 31, 1999, the
plan covered 14 active participants and had $33,054 in assets. |
Our goal is to assure that consumers know
the department is only a phone call away to help protect the benefits promised
by employers, said Howard Marsh, director of the Atlanta regional office
of the departments Pension and Welfare Benefits Administration.
Employers and workers can reach us at 404. 562.2156 for help with any
problems relating to pension and health plans provided in the private
sector. |
(Herman v. Seatrace Pharmaceuticals, Inc.
Civil Action No. 01 BU 344-M) |
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. |
| |
|