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Release Date: May 18, 1999
Release
Number: V-97
Contact Name: Rita Ford
Phone Number: (202)
219-8921 |
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The trustee of a 401(k) plan for a Fort Wayne, Ind., company was
permanently barred from managing any plan covered under federal pension law and
an independent fiduciary was appointed to manage the company plan’s
assets, in a consent order and judgement obtained by the U.S. Department of
Labor. |
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Carol Cavell, trustee of the Interim Healthcare of Fort Wayne,
Inc., 401(k) plan, named as a defendant in both the consent order and judgment
and a simultaneous lawsuit, also forfeited $50,102.79 of contributions that
were directed back to harmed participants. |
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The lawsuit alleged that Cavell failed to remit timely
contributions to participants’ 401(k) accounts from October 1992 through
September 1997 that were withheld through payroll deductions. Cavell also
allegedly failed to hold the assets of the employees’ benefit plan in a
trust separate from the assets of the employer’s general accounts. Both
actions violated the Employee Retirement Income Security Act (ERISA), the
federal pension law. Also named as defendants in the lawsuit were Interim
Healthcare of Fort Wayne, Inc., the plan sponsor and administrator, and the
corporation’s 401(k) plan. |
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Interim Healthcare of Fort Wayne is a home health care and medical
personnel staffing company. The plan was established in 1991 by Interim to
provide retirement, disability and death benefits to employees. The company
filed for bankruptcy in September 1996, and the defendants were also ordered to
pay $18,000 still owed the plan that will be remitted in compliance with the
bankruptcy reorganization plan. |
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The actions resulted from an investigation by the Chicago Regional
Office of the Pension and Welfare Benefits Administration into violations of
ERISA. The lawsuit was filed on April 28 and the consent order and judgment was
entered on April 29 in the federal district court in Fort Wayne, Ind. |
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Herman v. Interim Healthcare of Fort Wayne, Inc.
Civil Action
No. 1:99CVO167 |
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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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