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Release Date: April 23, 1999
Release
Number:V-72
Contact Name: RITA FORD
Phone Number: (202)
219-8921 |
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The U.S. Department of Labor has sued the owner of Columbus,
Ohio-based TennOhio Transportation Co. for failing to deposit employee
contributions into investment accounts of the company's 401(k) plan and keeping
plan money in accounts of TennOhio and related companies. |
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The plan, established in 1993, provides retirement benefits to as
many as 356 employees of TennOhio and three related companies: Marpam Truck and
Trailer Co., Commercial Trailer Co. and Garland Transportation Co. The plan had
assets of $649,931.00 as of June 30, 1997. |
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According to the lawsuit, John Armstrong violated the Employee
Retirement Income Security Act (ERISA) by failing to remit voluntary employee
contributions to the 401(k) plan's investment accounts over the period Nov. 1,
1996 to Aug. 25, 1997. At the time of the improper action, Armstrong was the
president of TennOhio and a major owner of the three related
companies. |
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Armstrong also was alleged to have used plan assets to benefit
parties related to the plan when he held plan money in the corporate accounts
of the companies sponsoring the plan. In addition, the lawsuit alleges that
Armstrong failed to hold plan assets in trust. |
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The lawsuit seeks an order from the court for Armstrong to
reimburse the plan, with interest, for any losses resulting from his fiduciary
breaches and correct the prohibited transactions in which he engaged. It also
asks that Armstrong's individual account be offset against the amount of
losses, if they are not properly restored to the plan, that the plan
redistribute the amount off set from Armstrong's plan accounts to the remaining
participants in amounts necessary to restore their losses, and that Armstrong
be permanently barred from serving as a fiduciary or service provider to any
ERISA-covered employee benefit plan. |
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The lawsuit resulted from an investigation by the Cincinnati
Regional Office of the Pension and Welfare Benefits Administration into
violations of ERISA. It was filed April 22 in the federal district office in
Columbus, Ohio. |
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Herman v. Armstrong
Civil Action No. C2-99-395 |
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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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