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Release Date: 04/19/2002
Release Number: KC-PWBA-09
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Kansas City, Missouri - The U.S. Department of Labor obtained a consent
judgment on April 18 requiring the former 401(k) trustee and corporate officer
of three defunct Fenton, Missouri Corporations to repay $27,656.64 to the
Mid-Continent Holding Company 401(k) plan.
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“The department’s goal is to protect the hard-earned
benefits promised to employees,” said Gregory Egan, regional director of the
Kansas City office of the Labor Department’s Pension and Welfare Benefits
Administration (PWBA), which conducted the investigation. The consent
judgment was entered in the federal district court in St. Louis, Missouri.
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Besides the restitution, the judgment permanently bars James F.
Kistner from serving any employee benefit plan covered by the Employee
Retirement Income Security Act (ERISA) and appoints Brooks Hamilton of Brooks
Hamilton & Associates Professional Employee Benefit Services of Dallas,
Texas as the independent fiduciary to the plan. Hamilton will have
authority to terminate the plan and distribute its assets to participants.
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The recovery for the plan represents the full amount withheld
from the plan participants’ paychecks, but not forwarded to their individual
accounts.
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Mid-Continent Holding Company was the parent holding company for
America’s Home Remodelers (AHR) and A.I. Manufacturing Company, LLC (AI).
The deferred compensation plan covered employees of AHR and AI. As of the
date the companies were forced into receivership and liquidated, the plan had
assets of $524,807 and 208 participants nationwide.
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According to the lawsuit filed March 3, 2001, corporate officers
and trustees violated ERISA when they failed to transfer to the plan
contribution withheld from the paychecks of employees of AHR/AI from May to
August 1998. They also allegedly failed to hold the plan’s assets in
trust and used plan assets for their benefit and the employer’s.
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Employers and workers can contact the Kansas City office at
1.816.426.5131 or call the Toll-Free Employee & Employer
Hotline at: 1.866.275.7922 for help with any problems
relating to private-sector pension and health plans.
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(Chao v. Kistner
Civil Action No. 4:01CV 429RWS)
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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 202.693.7775.
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