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Release Date: 02/25/1998
Release Number:
98-29-LA
Contact Name: Rita Ford
Phone Number: 202.219.8921
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A trustee of an employee benefit plan in Jackson,
Miss., pleaded guilty to one count of embezzling nearly $95,000 of the plan's
money and converting it to his own use. |
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John Francis Schmelzer pleaded guilty to charges
stemming from a May 14 indictment that he embezzled $94,833.00 from the
Professional Staffing Service CA Money Purchase Plan, an employee benefit plan
governed by the Employee Retirement Income Security Act (ERISA). |
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The Professional Staffing Service CA Money
Purchase Plan had assets of approximately $317,000 in 1993 and
237 participants in 1991, the most recent date in which Schmelzer filed plan
documents with the department. The plan was established in January 1983 in San
Francisco, Calif., to provide pension benefits for employees of Professional
Staffing Services, an employment service, of which Schmelzer was also owner. In
1990, Schmelzer sold the business, which eventually became defunct. He
continued to manage the pension plan, however, and the plan assets were
transferred to Jackson, Miss., where he relocated. |
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From Dec. 7, 1993 until Jan. 30, 1995, Schmelzer
embezzled, stole and willfully converted to his own use money, property and
other assets of the Professional Staffing Service, according to a plea
agreement reached with the U.S. Attorney's Office in Phoenix, Ariz. |
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In pleading guilty on Feb. 9, the
defendant agrees to make restitution to the plan in an amount that will be
determined by the court but not greater than $153,833.00. Sentencing is
expected to take place in March. |
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In a prior civil action by the department in July
1996, Schmelzer also was removed as plan trustee. |
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U.S. v. Schmelzer
CR No. CR -
98-003PHXSMM |
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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 202.693.7775. |
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