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Release Date: 06/01/2001 Release
Number: V-404 Contact Name: Gloria Della Phone Number: 202.219.8921 |
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Cincinnati, Ohio - Youngstown, Ohio-based
Spike Industries, Inc. agreed to a consent order and judgment on Thursday, May
31, restoring $301,555.44 to the profit sharing plan as restitution for
improperly loaning plan assets to the company and failing to timely forward
employee contributions to the plan. Spike Industries manufactures railroad
spikes. |
The judgment also requires that the company and
trustee James H. Smith submit recommendations on an independent fiduciary to
manage the plan. After the fiduciary is appointed, they are permanently barred
from serving any plan governed by federal employee benefit law, except
fully-insured welfare plans. |
Under the judgment, Smith must waive his right to
benefits under the plan totaling $390,002.31 until Spike Industries reimburses
the plan. |
The departments lawsuit, filed
simultaneously with the judgment, alleges that Spike Industries and Smith
violated the Employee Retirement Income Security Act (ERISA) when
they: |
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Made a series of improper loans
to Spike Industries from May 1994 to January 1999
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Authorized a plan loan of
$41,000 to Smith
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Failed to timely remit employee
salary deferral contributions to the plan.
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This case, filed in federal district court in
Cleveland, Ohio, resulted from an investigation conducted by the Cincinnati
Regional Office of the departments Pension and Welfare Benefits
Administration into alleged violations of ERISA. |
This action reaffirms our commitment to
protect the hard-earned benefits promised by employers, said Joseph
Menez, director of PWBAs Cincinnati Regional Office. Employers and
workers can reach us at 859.578.4680 for help with any problems relating to
private-sector pension and health plans. |
(Spike Industries, Inc. Civil Action No.
4:01CV1319) |
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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