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Two Kansas City, Mo. orthopedic surgeons have
agreed to restore $287,088.97 to the Orthopedic Associates of Kansas City, Inc.
Money Purchase Pension Plan as restitution for losses resulting from the
investment of nearly all of the plan’s assets in a single speculative and
volatile gold share fund, according to a consent judgment obtained by the U. S.
Department of Labor.
Drs. John W. Collins, Jr. and Harold D. West, Jr.
also were replaced as Trustees of the plan by The Midwest Trust Company,
Overland Park, Kansas.
Orthopedic Associates operates a medical group of
orthopedic surgeons with three offices located in the Kansas City metropolitan
area. The medical practice sponsored the plan for as many as 25 employees. The
restitution amount noted above will be credited solely to the plan accounts of
non fiduciary participants.
A lawsuit, filed on August 31, 2000, alleged that
trustees Collins and West failed to diversify plan investments by improperly
investing approximately 95% of plan assets and all dividends in a single
speculative and volatile gold share fund.
This case resulted from a civil investigation
conducted by the Kansas City Regional Office of the Pension and Welfare
Benefits Administration (PWBA) into alleged violations of the Employee
Retirement Income Security Act. The judgment was entered on September 14, 2000
in federal district court in Kansas City, Missouri.
PWBA Regional Director Gregory Egan said,
“This case reaffirms our commitment to protect the hard earned benefits of
workers. Workers also can help us protect their plan benefits by contacting our
office at 816-426-5131 if they have questions or suspect abuse of their
pension, health or other benefit plans.”
(Herman v. Collins)
Civil Action No.
4-00-00895-GAF |
