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American Technical Institute (ATI) of Memphis,
Tenn., and its president, Dr. Dallas Wayne Jones, were ordered to pay
$63,554.68 to the institute’s money purchase plan in a judgment won Dec.
1, 1999, by the U.S. Department of Labor.
The amount restored to the money purchase
pension plan represented $45,208.73 of employer contributions and lost earnings
payable by ATI and $18,345.95 of employee contributions and lost earnings
payable by both Jones and ATI.
The judgment resulted from a January 1999 lawsuit
that alleged the defendants failed to timely transmit employer and employee
contributions owed to the institute’s money purchase pension plan, which
covered as many as 11 participants.
The lawsuit alleged Jones did not transmit
employee contributions from August 1994 to January 1995 and from Jan. 1, 1998,
to July 30, 1998, to the Teachers Insurance and Annuity Association College
Retirement Equities Fund, an annuity established for plan
participants, and that delinquent matching employer contributions had
not been collected since August 1994. Damages awarded include lost earnings on
contributions remitted to the trust untimely from August 1 994 through April
1999.
The judgment resulted from an investigation by the
Atlanta Regional Officeof the department’s Pension and Welfare Benefits
Administration into violations of the Employee Retirement Income Security Act.
It was entered in the federal district court in Memphis, Tenn.
Herman v. American Technical Institute
and Dr.
Dallas Wayne Jones
Civil Action No. 99 CV 2066 |
