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Release Date: 08/11/2003
Release Number: 03-431
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Silver Springs, Maryland - A federal court in
Greenbelt, Maryland on July 29, 2003 appointed an independent fiduciary to
distribute all remaining plan assets of the profit sharing plans of Della
Ratta, Inc. and Commercial Management Company in Silver Spring, Maryland.
The court further ordered restoration of more than $166,000 to the plans
from assets held in a Della Ratta, Inc. corporate account and restitution
to be paid by the plans’ trustees. |
“Corporations
and executives who are designated retirement plan fiduciaries have a
responsibility to protect the pension assets of its participants,” said
Secretary of Labor Elaine L. Chao. “These defendants used the plan
assets for their personal gain. The department's action recovers pension
assets taken illegally from the workers and their families.” |
Following
a trial, the court ordered the appointment of Nell Hennessey of
Washington, D.C. to be the independent fiduciary, with authority to
distribute all remaining plan assets to plan participants and to conclude
all business of the plans. The court also ordered defendants Joseph M.
Della Ratta and Joseph E. Brimmer to restore assets owed to the plans, be
removed as trustees of the plans and be permanently barred from serving
any plans governed by the Employee Retirement Income Security Act (ERISA)
in the future. |
The
court order resolves a lawsuit filed December 1, 2000 against the
defendants for transferring plan assets to a Della Ratta, Inc. account and
for using plan assets to pay a sanction owed by Della Ratta, Inc. to the
Internal Revenue Service. The suit also alleged that the trustees and the
companies, which served as plan administrators failed to make
distributions to all participants when the plans were terminated in 1999.
The plans covered approximately 32 participants. |
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The department also obtained a temporary restraining
order in December 2000 prohibiting the defendants from withdrawing assets
from the corporate account to which plan assets had been transferred. |
Della
Ratta, Inc. is a construction company and Commercial Management is a real
estate management firm that served as administrators of the plans. Della
Ratta is an officer of both companies and Brimmer is an officer of Della
Ratta, Inc. |
This
case was investigated by EBSA’s Washington District Office. Employers
and workers can contact the office at 301.713.2000 or EBSA’s toll free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector pension and health plans. |
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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. |
