|
Atlanta, Georgia - The Gary M. Hochberg CLU
Insurance Agency of Hollywood, Florida, and the trustee of its pension
plan, have been ordered to restore almost $108,000 to the plan as
restitution for improper transfers of plan assets. The order resulted from
a lawsuit filed by the U.S. Department of Labor.
“Retirement benefits are crucial to America’s
workers,” said Ann L. Combs, assistant secretary of labor for employee
benefits security. “The department took this legal action to ensure that
workers are paid the benefits they are promised.”
The court order, entered in federal district court in
Ft. Lauderdale, Florida, requires the agency and Gary M. Hochberg to
restore $107,938 to the plan. Hochberg also is permanently barred from
serving as a fiduciary to any employee benefit plan governed by the
Employee Retirement Income Security Act (ERISA), and an independent
trustee will be appointed to manage the plan.
Hochberg was the pension plan’s trustee as well as
the sole owner, director and officer of the insurance agency. The
department’s suit, filed October 8, 2003, alleged Hochberg transferred
$55,120 in plan assets in 1994 and 1996 to himself and Designer Wear Inc.,
a company in which he had an interest. These transfers were prohibited by
ERISA.
The department also alleged that Hochberg failed to
maintain and account for plan funds and monitor the fair market value of
plan assets; excluded eligible employees from coverage by the plan, and
failed to pay or underpaid benefits to some participants. In 1999, the
defendant reportedly paid some retirees lower rates of benefits than
provided in the plan’s benefit formula. Hochberg also allegedly failed
to account for plan contributions, plan investment earnings and losses and
plan expenses as early as 1992.
The case resulted from an investigation conducted by
the Employee Benefits Security Administration’s (EBSA) Atlanta regional
office. Employers and workers can contact the regional office at
404.562.2156 or EBSA’s toll free number, 1.866.444.EBSA (3272), for help
with problems relating to private-sector pension and health plans.
(Chao v. Hochberg)
Civil Action No. 03-61859 |
