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Release Date: 10/13/1998
Release Number:
98-89-10-13
Contact Name: Diana Petterson or
Beverly Sepulveda
Phone Number: 214.67.4776, ext. 222 or 221 |
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The U.S. Department of Labor has obtained a
consent order and judgment requiring three corporations and three trustees of
the Nomali, Inc. Employees 401(k) plan in Brownsville, Tex., to repay
$87,318.00 to its plan participants and beneficiaries for failure to charge the
full market value on rental property and land that they authorized the plan to
lease. |
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The defendants were ordered to distribute pro rata
to the accounts of the plan participants the money lost by the plan; and to
correct the breaches made in the lease agreements between the plan and Nomali,
Inc., with respect to the properties located at 4303 N. Navarro St., in
Victoria, Tex., and 230 Security Drive in Brownsville, Tex. Nomali, Inc. owns
and operates Drug Emporium drug stores in Victoria and Brownsville, Tex.
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Named as defendants in the consent order and
judgment were trustees Ronald L. Mann, Danny L. Mann and Dougals A. Mann. Also
named were Nomali, Inc., and two of its subsidiaries, Mann Drug, Inc. of
Victoria and Mann Drug, Inc. of Brownsville. The three companies are plan
sponsors of the 401(k) plan. |
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The defendants’ actions in improperly leasing
the plan-owned properties to parties related to the plan by leasing at less
than fair market value allegedly violated provisions of the Employee Retirement
Income Security Act (ERISA). |
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The consent order and judgment resulted from an
investigation by the Dallas Regional Office of the Pension and Welfare Benefits
Administration into violations of ERISA. The consent order and judgment were
entered on Oct. 8, 1998 in the federal district court in Brownsville,
Tex. |
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Herman v. Nomali
Civil Action No.
B-98-136 |
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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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