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Release Date: 07/24/2001
Release Number: 163
Contact Name: Gloria Della
Phone Number: 202.219.8921
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New York, New York - The U. S. Department of
Labor sued Emerald Capital Management, Ltd. of Rochester, New York and its
president on July 20 for imprudently making excessive securities trades
with the assets of numerous employee benefit plan clients. |
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Emerald Capital Management and president William Robert
Goodhue served as investment advisors to the plans until April 1997. The
company has since been dissolved. |
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The Labor Department lawsuit alleges that the
defendants violated the Employee Retirement Income Security Act (ERISA) in
connection with the stock trades. According to the lawsuit, the defendants
made excessive trades in plan accounts resulting in annual turnover of
assets in excess of 1,000%. The plans paid commissions on these trades and
the defendants received substantial recompense as a result of those
commissions. |
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The lawsuit seeks a court order to require that the
defendants restore to the plans the amounts of assets which the defendants
cost the plans in excessive commissions, plus interest. |
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This case, filed in federal district court in
Rochester, New York, resulted from an investigation conducted by the
Boston Regional Office of the department’s Pension and Welfare Benefits
Administration into alleged violations of ERISA. |
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“This action reaffirms our commitment to protect the
hard-earned benefits promised by employer,” said James M. Benages,
director of PWBA’s Boston Regional Office. “Employers and workers can
reach us at 617.565.9600 for help with any problems relating to
private-sector pension and health plans.” |
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(Chao v. Emerald Capital Management, Ltd.
Civil Action No. 01CV 6356T(F)) |
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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. |
