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Release Date: 12/28/2001
Release Number: 01-286
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Miami, Florida - The law firm of Bailey, Hunt,
Jones & Busto, P.C., -- now known as Bandsawe Residual Corp. -- must
restore $135,233 to its profit sharing plan as restitution for making
improper loans, according to a consent order issued December 21, in
federal district court here. |
The settlement with the U.S. Department of Labor also
requires that Neil Useden be appointed as independent fiduciary and
trustee to manage this plan and a defined benefit plan sponsored by the
law firm. As part of the settlement, the plan trustee has agreed to pay
restitution in the amount of $7,687 plus lost earnings. |
Named as defendants in the case were Guy B. Bailey,
Jr., the plan's trustee, and Bandsawe Residual Corporation, the current
name of the law firm, which served as the plan administrator. |
In a lawsuit filed in October 2000, the Labor
Department accused the firm and the trustee of providing improper plan
loans exceeding $162,000 to five of the plan's participants and failing to
require full repayment of these and other loans. By settling the case, the
defendants neither admit nor deny the allegations. |
Thirty-four participants were covered by the profit
sharing plan, which had been converted from a money purchase pension plan
in 1994 and had assets of $723,399 as of December 31, 1998. |
"This case exemplifies our commitment to protect
workers' hard-earned benefits,” said PWBA's Atlanta Regional Director
Howard Marsh. "Workers can help us protect their benefits by
contacting our office at 404.562.2156 if they have questions or suspect
abuse of their pension, health or other benefit plans." |
The settlement resulted from an investigation by the
Miami District Office of the Pension and Welfare Benefits Administration
into alleged violations of the Employee Retirement Income Security Act (ERISA). |
(Chao v. Bailey
Civil Action No. 3914) |
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. |