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Release Date: 03/23/2000 Release Number: V-134
Contact Name: Sharon Morrissey Phone Number:202.219.8921 |
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The U.S. Department of Labor has settled its civil
lawsuit in Milwaukee with the former president of the bankrupt Louis Allis Co.,
Daniel E. Stetler, III., recouping $70,867.43 for participants of the
company-sponsored non-union 401(k) plan. Stetler had, in January 1999, filed
his own petition for personal bankruptcy. |
The departments complaint against the
company plans and Stetler of Greendale, Wis., a 41% owner of the common stock
of Louis Allis Co. and a member of its board of directors, requested relief
under the Employee Retirement Income Security Act. |
In the settlement, Stetler, barred permanently
from holding a fiduciary position with any employee benefit plan covered by the
Employee Retirement Income Security Act, agreed to restore the salary deferrals
to the non-union plan by a transfer of money from his own 401(k) account in the
non-union plan. |
The Louis Allis Co. established its union and
non-union employee 401(k) plans in 1994, and for approximately a two-month
period in 1998, the company allegedly failed to remit voluntary employee
contributions withheld through salary deferral to the plans investment
accounts. |
On Dec. 21, 1999, M. Larry Lefoldt of Ridgeland,
Miss., was named as the independent fiduciary to the plans. He is arranging for
the orderly distribution of plan assets to participants, and the total
liquidation and termination of the plans. Lefoldt has ascertained that the
combined assets of the plans as of Dec. 31, 1999, total approximately $9.7
million. |
The legal actions pertaining to the companys
pension plans resulted from an investigation conducted by the Chicago Regional
Office of the departments Pension and Welfare Benefits Administration
into alleged violations of the federal pension law. The settlement was entered
in the federal district court in Milwaukee on Feb. 28. |
(Herman v. Daniel E. Stetler III, ) Civil
Action No. 99-C-502 |
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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Archived News Release Caution: Information may be out of date.
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