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Release Date: 03/26/1998
Release Number:
USDL-67
Contact Name:GLORIA DELLA
Phone Number:
202.219.8921 |
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The U. S. Department of Labor has obtained a court
judgment removing Levi J. Carey Sr., owner of Inglewood-based Computer Software
Analysts, Inc., as a trustee to the company’s 401(k) plan and appointing
an independent trustee to oversee the plan. |
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Under the consent judgment, Patsy Swick of Swick
& Associates in Bellflower, Calif., has been appointed to manage the plan
and to distribute the assets to participants upon termination of the plan. The
judgment also requires that Carey and his wife forfeit their pension benefits
under the plan and that the money be re-allocated to the pension accounts of
the remaining plan participants. |
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The Labor Department sued Carey on Jan. 28 for
failure to transmit employer and employee contributions withheld from employee
paychecks to the 401(k) plan. The money was to be transmitted to Aetna Life
Insurance Co. He directed that an amount substantially less than required be
remitted to the plan’s Aetna account over the period July 1992 to June
1994. In addition, Carey failed to comply with the plan’s rules. |
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In a related criminal action, Carey pleaded guilty
on July 7, 1997 to embezzling not less than $450,000 from the plan and is
awaiting sentencing in the criminal case. |
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Computer Software Analysts provided technical and
engineering services in software design to such federal government agencies as
the National Aeronautics and Space Administration and the Department of
Defense. The 401(k) profit sharing plan covered 108 participants. |
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This case resulted from an investigation by the
Los Angeles Regional Office of the Pension and Welfare Benefits Administration
into alleged violations of the Employee Retirement Income Security Act. The
judgment was entered on March 19 in Federal District Court for the Central
District of California at Los Angeles. |
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(Herman v. Carey)
Civil No. CV 98-710LGB
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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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