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Release Date: January 25, 2007
Release Number: 07-0101-BOS
Contact Name: John M. Chavez
Phone Number: 617.565.2075
New Britain, Connecticut - The U.S. Department
of Labor has sued New Britain-based Macristy Industries Inc. and company
president Jeffrey B. Barlow for alleged misuse of more than $1.8 million
in assets of the company's cash balance plan.
The lawsuit, filed in U.S. District Court for the
District of Connecticut, alleges the defendants violated the Employee
Retirement Income Security Act (ERISA) between the fall of 2002 and the
present when they improperly transferred up to $2,597,000 in plan assets
to accounts of the company and filed false or no annual reports with the
Labor Department. The defendants allegedly used approximately $773,186
for legitimate plan benefits and expenses and diverted the balance —
approximately $1,823,813 — to pay for company operations.
"The department will not tolerate workers'
retirement savings being abused and used as a piggy bank for the
convenience of management," said Secretary of Labor Elaine L. Chao.
"This legal action seeks on behalf of the workers full restitution,
compliance with federal disclosure requirements and plan integrity going
forward."
The department's suit seeks a court order requiring
the defendants to restore to the plan all losses with interest, to
disgorge all profits received, and to require the company to file
appropriate Form 5500 annual reports. The suit also asks the court to
bar Barlow from service as a fiduciary to any ERISA-covered plan and to
appoint an independent fiduciary to be trustee of the plan.
Macristy Industries Inc. is a holding company that
owns Connecticut Stamping and Bending Inc., Tube Bends Inc., The Sunrise
Realty Corp. and Plumb E-Z Manufacturing Co. As of January 2003, the
Macristy Industries Inc. Cash Balance Retirement Income Plan had
approximately 286 participants.
The investigation of this case was conducted by the
regional office in Boston of the Employee Benefits Security
Administration. Employers and workers can contact the Boston office of
EBSA at 617.565.9600 or may call EBSA's toll-free number 1.866.444.EBSA
(3272) for help with any problems relating to private-sector pension and
health plans.
In fiscal year 2006, EBSA achieved monetary results
of $1.4 billion related to pension, 401(k), health and other benefits
for millions of American workers and their families.
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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