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Release Date: 12/14/1999
Release Number:
99-232
Contact Name: Rita Ford
Phone Number: 202.219.8921 |
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A Fort Lauderdale, Fla., pension plan trustee was
ordered to restore to the plan $90,818.60 for losses that occurred from his
fiduciary breaches. In a settlement agreement and consent order obtained by the
U.S. Department of Labor, B.E. Hensley also agreed to waive any claims he has
against the plan, including claims for benefits; was removed from his position
as plan trustee and permanently barred from exercising control over any
federally-covered pension plan. |
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The settlement agreement also stipulated that
Larry Lefoldt of Lefoldt & Co. in Jackson, Miss., be appointed to serve as
an independent fiduciary to exercise control over the plan, including
distributing any proceeds that may accrue. |
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The order resulted from a simultaneous lawsuit
that alleged B.E. Hensley, trustee of the profit sharing trust for employees of
B.E. Hensley, Inc., used plan money to make a personal loan to himself of
$50,000, with an 8 percent interest rate. The action constituted self-dealing
and violated the Employee Retirement Income Security Act (ERISA). No documents
were ever executed for the loan and the accrued interest totaled $39,091.
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B.E. Hensley, Inc. was a construction firm, where
Hensley served as the owner, chief officer and trustee of its profit sharing
plan, which provided retirement, death and disability benefits. Two related
firms, B.E. Hensley Forming Company of Broward, Inc. and B.E. Hensley Forming
Company of Dade, Inc., also had employees covered by the plan. B.E. Hensley,
Inc. ceased operations and was dissolved in December 1991. The plan document
provided for a 10-year vesting schedule and, as of Dec. 31, 1993, covered 81
participants. |
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The action resulted from an investigation by the
Miami District Office of the Pension and Welfare Benefits Administration into
violations of ERISA. The consent order was entered on Dec. 10 in the federal
district court in Fort Lauderdale, Fla. |
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Herman v. Hensley
Civil Action No.
99-7544-CIV-LENARD |
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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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