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Release Date: 04/10/1998
Release Number: USDL:
V-100
Contact Name:GLORIA DELLA
Phone Number:
202.219.8921 |
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The U. S. Department of Labor has obtained a consent order and
judgment requiring the trustees of the Choice Advantage Auto Group 401(k) and
cafeteria plans to waive all rights to distributions from the 401(k) plan until
until all other participants in the plan receive their full benefits. |
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Defendants Richard Lutey and Larry Eveland have restored $89,115
to the 401(k) plan and $40,809 to the cafeteria plan. The defendants also are
permanently barred them from serving any plan governed by the Employee
Retirement Income Security Act (ERISA). |
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Lutey and Eveland, the co-owners of Specker Motor Sales Company
and E & L Enterprises, Inc, were named as defendants in the lawsuit filed
simultaneously with the judgment on (DATE). The companies were car dealerships
which filed for bankruptcy in 1997. The plans, which covered as many as 94 and
had assets of $962,101, subsequently were terminated and the assets of the
401(k) plan were distributed to participants. |
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According to the lawsuit, the defendants failed to remit voluntary
employee contributions and loan repayments to the 401(k) plan and failed to
remit employee premium contributions to the cafeteria plan. |
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Joseph R. Menez, Cincinnati Regional Director for the Pension and
Welfare Benefits Administration (PWBA) said, “This settlement completely
restores pension benefits to participants who were shortchanged. It also puts
plan fiduciaries on notice that they must perform effectively so as not to
adversely affect the benefits of plan participants. |
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The case resulted from an investigation by PWBA’s Cincinnati
Regional Office into violations of ERISA. The case was filed on March 9 in
federal district court in Marquette, Mich. |
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delete any extra table cells |
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delete any extra table cells |
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delete any extra table cells |
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delete any extra table cells |
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delete any extra table cells |
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(Herman v. Lutey)
Civil Action No.2:98 CV-91 |
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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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