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Release Date: 03/05/1999
Release
Number: V-38
Contact Name: Gloria Della
202.219.8921
Joseph R. Menez
606.578.4680
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The U. S. Department of Labor has obtained a consent judgment
requiring Bertin Steel Processing, Inc. of Wickliffe, Ohio and trustees of its
welfare plan to pay $556,842 as restitution for improper loans made by the plan
and appointing an independent entity to manage the plan. |
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The court ordered Bertin Steel and trustees Bernard amd Samuel
D’Ambrosi to make the restitution to the plan as repayment for delinquent
loans made by the plan to Benefit Management Consultants, Inc. (BMCI) and its
owner Nicholas Vukich and his wife Patricia Vukich. |
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Under the judgment, trustee Bernard D’Ambrosi (who also
serves as president of Bertin Steel) is permanently barred from serving in a
position of trust or providing services to any plan governed by the Employee
Retirement Income Security Act (ERISA). Trustee Samuel D’Ambrosi —
who also is the company’s vice president — is permanently barred from
serving plans of Bertin Steel and barred for 10 years from dealing with any
plan governed by ERISA. |
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The defendants also were ordered to guarantee repayment of
$103,626.34 to the plan, representing principal and interest on delinquent
loans to Richmond Industries, Inc. as well as the repurchase of Richmond
Industries stock owned by the plan for $223,061.10 by March 31, 1999. |
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The department sued the defendants on Dec. 2, 1997 for misusing
plan assets to make improper loans and transfers to themselves and others,
including BMCI and Richmond Industries. |
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The welfare plan provides health, death, dental and disability
benefits to employees of Bertin Steel. At the end of 1996, the plan covered 103
participants and reported $1,345,313 in assets. |
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The judgment was entered on March 4 in federal district court in
Cleveland, Ohio. The lawsuit resulted from an investigation by the Cincinnati
Regional Office of the department’s Pension and Welfare Benefits
Administration into alleged violations of ERISA. |
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(Herman v. Bertin Steel Processing, Inc.)
Civil Action No.
4:97 CV 3139 |
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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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