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Release Date: 02/19/1998
Release Number:
USDL-39
Contact Name: GLORIA DELLA
Phone Number: 202.219.8921
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A Los Angeles federal court entered a default
judgment requiring Mid-Cities Association for Retarded Children of Compton,
Calif. and the trustees of its defined benefit plan to pay $227,515 and any
future losses as restitution to the plan. |
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The court also ordered the aCourt Orders
Restitution Of More Than $227,000 To Compton Pension Plan ppointment of an
independent trustee to replace the existing plan trustees. The defendants also
were required to provide a formal accounting of plan finances to the
independent trustee within 90 days of the judgment. |
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The retirement plan covered 54 participants and
had $1,718,000 in assets as of December 1995. The plan provided for
distribution to participants upon retirement, disability, death or termination
of employment. |
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The judgment resolves a lawsuit by the Labor
Department against the association and plan trustees John Wagoner and his wife,
Irma Wagoner, for failing to maintain records required by the Employee
Retirement Income Security Act (ERISA). The April 9, 1997 lawsuit alleged that
records furnished to the Pension and Welfare Benefits Administration (PWBA)
— which administers ERISA-covered plans — failed to substantiate the
value of plan assets reported on the plan’s Form 5500 annual reports.
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The defendants also made improper distributions to
plan participants, including Irma Wagoner, and transferred plan funds to
Mid-Cities. The illegal transfers to Mid-Cities did not require payment of
interest and there was no agreement requiring the repayment of funds
transferred to the association. |
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The default judgment was entered on Feb. 5 in
federal district court in Los Angeles. The case resulted from an investigation
by the Los Angeles Regional Office of PWBA. |
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(Herman v. Wagoner)
Civil Action No.
97-2361-JNI(Mc) |
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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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