|
|
|
|
|
Release Date:12/04/1998
Release Number: USDL:
98 - 203
Contact Name:Sharon Morrissey
Phone Number:
202.219.8921 |
|
|
| The U.S. Department of Labor filed a
lawsuit today to appoint an independent trustee to terminate and distribute the
assets of a 401(k) plan sponsored by the Hollywood, Fla.-based Carolina Fitness
Equipment, Inc. (CFE). |
| According to the department’s
lawsuit, the plan’s 58 participants have been unable to direct their
investments among different options provided under the plan and have had their
inquiries to the company and the plan trustees go unanswered. The plan had
assets of $349,977 as of June 30, 1996, and, according to the suit, no employer
or employee contributions have been made to the plan since July of that year.
|
|
The lawsuit also seeks to have the company and the plan’s
named fiduciaries, Harvey Miller and Edward B. Beam, Jr., removed from their
positions with the plan. |
|
The department’s lawsuit alleges that CFE, incorporated in
Charlotte, N.C. in 1983, was purchased by Bio-Dyne North Corporation of Atlanta
in February 1994, when the latter relocated CFE’s operations to Hollywood,
Fla. |
|
CFE established its 401(k) plan in January 1988 and amended it in
June 1994. Named as its trustees are Miller and Beam. The trustees terminated
their employment with the firm in July 1996, but did not resign formally as
trustees of the plan. Nor did they notify the plan’s third-party
administrator or group annuity contractor of their resignations. The company
ceased operating Aug. 23, 1996. |
|
CFE also allegedly failed to appoint a trustee to replace Miller
and Beam or appoint replacement fiduciaries to operate and administer the plan,
which has not been formally terminated. |
|
The lawsuit resulted from an investigation conducted by the
Atlanta Regional Office of the department’s Pension and Welfare Benefits
Administration (PWBA). It was filed in the federal district court in the
Southern District of Florida on Dec. 3 in Ft. Lauderdale. |
|
(Herman v. Carolina Fitness Equipment, Inc., et al)
Civil
Action #98-7367-CIV-GOLD |
|
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. |
|
|
