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Release Date: 02/04/1998
Release Number:
V-25-CINN
Contact Name:RITA FORD
Phone Number:
202.219.8921 |
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The U.S. Department of Labor has filed a lawsuit
against a Columbus, Oh., corporation and its plan trustees for failing to
promptly remit the money withheld from employees' paychecks into the 401(k)
plan's investment accounts. |
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Named in the lawsuit were Buckeye Technical
Services, Inc. and trustees Myron G. Place and William R. Kugel, Jr. Also named
as a defendant was the Buckeye Technical Services, Inc. Retirement Plan. The
plan was established in 1992 to provide benefits to employees of Buckeye upon
retirement or in the event of undue financial hardship. |
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The department's lawsuit alleged from October 1992
through June 30, 1995, Buckeye withheld from employees' pay voluntary plan
contributions and failed to promptly remit the amounts into the plan's
investment accounts. The money allegedly was held by the company in its own
general assets. The trustees also were alleged to have failed to ensure that
the voluntary employee contributions withheld were deposited in the plans's
investment accounts. |
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The department asks that defendants Place and
Kugel be permanently barred from serving as fiduciaries to any employee benefit
plan covered under the Employee Retirement Income Security Act (ERISA); that
they correct the prohibited transactions in which they engaged and that both
the corporation and the trustees restore to the plan any losses, plus interest,
resulting from the fiduciary breaches for which they are liable. |
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The civil case represents on-going efforts on the
part of the department to eliminate misuse of employee contributions with
respect to employee benefit plans. |
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The lawsuit resulted from an investigation by the
Cincinnati Regional Office of the Pension and Welfare Benefits Administration
into violations of ERISA. |
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The lawsuit was filed in the federal district
court in (Columbus Ohio) on Feb. 3. |
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Herman v. Buckeye Technical Services, Inc.
Civil Action No. C2 98-0140 |
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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. |
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