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Release Date: 06/16/2003
Release Number: BOS 2003-121
Contact Name: Ted Fitzgerald
Phone Number: 617.565.2074
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Bangor, Maine - The trustees of the Pepsi-Cola
Bottling profit sharing plan in Aroostook County, Maine, have been barred
from serving as fiduciaries in the future to any plan governed by the
Employee Retirement Income Security Act (ERISA) under a consent judgment
obtained on June 4, 2003 by the U.S. Department of Labor. |
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“Plan fiduciaries have a sacred duty to protect the
interests of plan participants, not themselves, not anyone else,” said
James Benages, director of the Boston Regional Office of the department’s
Employee Benefits Security Administration (EBSA). “When they fail to do
so, we will not hesitate to take appropriate legal action to recover and
safeguard workers’ benefits.” |
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The judgment, entered in federal district court in
Bangor, resolves a complaint filed against J. Gregory Freeman, Katherine
A. Freeman and Kevin G. Freeman, trustees for the Pepsi-Cola Bottling of
Aroostook, Inc., Profit Sharing Plan and Trust for alleged violations of
ERISA. |
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The complaint alleged that the defendants improperly
transferred $618,682.61 in funds from the plan to fiduciary J. Gregory
Freeman’ s account in January 2000, loaned $130,000 of the plan’s
assets to fiduciary Kevin G. Freeman in October 1997, overpaid a plan
participant by $4,984 in January 1999, and failed to collect the
overpayment. |
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The judgment requires the defendants to terminate the
plan and distribute the plan’s assets to eligible participants and
beneficiaries. Benages noted that the trustees have already reimbursed the
plan for the improper transfers and asset overpayment with interest. |
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EBSA’s Boston regional office, which investigated the
case, is located in Room 575 of the John F. Kennedy Federal Building. It
can be reached by telephone at 617.565.9600, or through EBSA’s toll-free
number, 1.866.444.EBSA (3272). |
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(Chao v. Freeman)
Civil Action No. 03-69-BC |
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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 202.693.7755. |
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