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Release Date: 06/30/1998
Release Number: USDL:
PWBA-98-55-6-30
Contact Name:GLORIA DELLA
Phone Number:
202.219.8921 |
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The U. S. Department of Labor has sued Miletus Associates Inc. and
its president for making over $120,000 in improper transfers and a loan from
the company’s 401(k) plan to the defendants. |
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Miletus Associates is an Albuquerque, N.M.-based engineering firm
which manufactures airborne surveillance equipment. The company’s 401(k)
plan covered 29 participants and had $371,052.57 in assets as of February
1996. |
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The Labor Department lawsuit alleges that Miletus Associates and
its president Donald Trone violated their duties under the Employee Retirement
Income Security Act (ERISA). The defendants allegedly:
transferred $79,444.21 of plan assets to the company which
subsequently retained the money;
loaned $48,713.19 to Trone which was never collected and is
currently delinquent;
failed to file annual reports which included a financial
statement of assets and liabilities valued at their current value; and
distributed retirement benefits to plan participants based on an
outdated valuation of plan assets. |
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The lawsuit seeks a court order to require that the defendants
reimburse the plan for any losses resulting from their improper actions and to
undo transactions prohibited by federal pension law. It also seeks to remove
the fiduciaries from their positions with the plan and to permanently bar them
from serving in positions of trust to this or any other plan governed by
ERISA. |
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This case resulted from an investigation conducted by the Dallas
Regional Office of the department’s Pension and Welfare Benefits
Administration into alleged violations of ERISA. The lawsuit was filed on June
26 in federal district court in Albuquerque. |
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(Herman v. Miletus Associates, Inc.)
Civil Action No.
98-778JC-LSG |
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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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