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Release Date: 10/07/1998
Release Number:
USDL-PWBA-98-84-10-7
Contact Name:Diana Petterson or
Beverly Sepulveda
Phone Number: (214) 767-4776, ext. 222 or 221 |
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Miletus Associates Inc. of Albuquerque, N.M. and its president
agreed to fully reimburse the company’s 401(k) plan for all losses under a
consent order obtained by the U. S. Department of Labor. |
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According to the judgment, the company and its president Donald
Trone agreed to reimburse the plan for a total of $227,110.84. The restitution
of lost principal and interest was ordered because of improper transfers and a
loan made from the 401(k) plan to the defendants. Trone was individually barred
from serving in a position of trust for any plan governed by the Employee
Retirement Income Security Act (ERISA). |
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In addition, the defendants may be assessed a civil penalty based
on $153,549.81 in improper transactions with the plan. |
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The judgment resolves a lawsuit filed June 26, 1998 alleging that
Miletus Associates and Trone violated their duties under ERISA when they:
— transferred $79,444.21 of plan assets to the company for
its own use;
— loaned $48,713.19 to Trone which was not repaid in
accordance with the loan document;
— distributed retirement benefits to plan participants
based on an outdated valuation of plan assets. |
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Miletus Associates is an 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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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 consent judgment was
entered on Oct. 6 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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