Archived News Release Caution: Information may be out of date.
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Release Date: 09/05/2001
Release Number: V-476
Contact Name: Rita Ford
Phone Number: 202.219.8921
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Kansas City, Missouri - Johnson Motor Company,
Inc. of Glencoe, Minnesota, and two corporate executives were ordered to
restore $144,741.94 to the company’s profit sharing plan in a consent
judgment and order obtained August 30, by the U.S. Department of Labor.
Named as defendants were the Johnson Motor Company, Richard D. Johnson,
its president, and Robert L. Johnson, its vice president. Robert Johnson
was also trustee of the profit sharing plan. |
The action resulted from a lawsuit filed by the
department in March alleging the profit sharing plan made a series of
unsecured loans without executing loan agreements and failed to report the
loans on annual reports required by the Labor Department. The lawsuit also
alleged the plan made additional prohibited transaction loans to the
Johnsons totaling $35,500, without reporting them on the annual reports.
The loans were not repaid. Johnson Motor Company ceased operations on August
31, and surrendered its assets to Chrysler Financial. |
The Johnsons were ordered to waive their rights to
$252,265 owed to them. In addition to the amount ordered paid in the
consent judgement, an additional $108,000 was restored to the plan before
the judgement was entered. |
The judgment also requires the Johnsons to terminate
the plan and notify participants that they may roll over contributions
into another qualified retirement plan. They may no longer serve as
fiduciaries to any plan subject to provisions of the Employee Retirement
Income Security Act. |
“This case exemplifies our commitment to protect
workers’ hard-earned benefits,” said Gregory Egan, regional director
in Kansas City for the Pension and Welfare Benefits Administration.
“Workers can help us protect their benefits by contacting our office at
816.426.5131 if they have questions or suspect abuse of their pension,
health or other benefit plans.” |
The consent judgment and order resulted from an
investigation by the Kansas City regional office of the PWBA. It was
entered in the federal district court in Minneapolis, Minnesota. |
(Chao v. Johnson Motor Company, Inc.
Civil Action No. 01-514JRT/FLN) |
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. |
Archived News Release Caution: Information may be out of date.
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