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Release Date: 09/17/2001
Release Number: V-482
Contact Name: Sharon Morrissey
Phone Number: 202.219.8921
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Cincinnati, Ohio - GMR Plastics Corp. in Wayne
County, Michigan and company owner Gary M. Raykhinshteyn were ordered to
pay $12,257.74, in losses and interest to the company’s pension plan in
a judgment obtained September 11 by the U.S. Department of Labor. |
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The company and Raykhinshteyn were removed from their
positions with the plan, and Raykhinshteyn was barred permanently from
serving as a fiduciary or service provider to any employee benefit plan
governed by the Employee Retirement Income Security Act (ERISA). |
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The court named Joseph S. Moynihan and Robert H. Bosart,
McDonald Investments - a KeyCorp Company of Birmingham, Michigan, as the
independent co-fiduciaries to manage the plan. They are to liquidate the
plan’s assets, communicate with participants regarding the plan
termination and their disbursement options and file termination papers
with the IRS and Department of Labor. |
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In March, defendants were sued for failing to remit
employee contributions to the plan. The department’s lawsuit alleged
that the withholdings of the participating employees were commingled with
the general assets of GMR to benefit the company or Raykhinshteyn. The
suit also alleged the plan did not have a fidelity bond required by
federal pension law. |
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The company, a subchapter S corporation producing
plastic parts and products, went into receivership on April 17, 1998, and
the receivership was dissolved on December 11, 1998. The company had a
simplified employee pension plan (SEP-SAR) with participants voluntarily
electing to make salary deferrals to the plan. |
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“Our goal is to assure that consumers know the
department is only a phone call away to help protect the benefits promised
by employers,” said Joseph Menez, director of the Cincinnati Regional
Office of the department’s Pension and Welfare Benefits Administration.
“Employers and workers can reach us in Cincinnati at 859.578.4680 or in
the agency’s Detroit District Office at 313.226.7450 for help with any
problems relating to pension and health plans provided in the
private-sector.” The Cincinnati office conducted this investigation. |
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The judgment was entered in the federal district court
in the Eastern District of Michigan in Ann Arbor. |
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(Chao v. Gary Raykhinshteyn
Civil Action No. 01-60056) |
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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. |
