March 2, 1999

PWBA Press Release: Iowa Insurance Company to Refund More than $6 Million [03/02/99]

Archived News Release — Caution: Information may be out of date.

For more information call: (202) 219-8921

An Iowa based insurance company, formerly Blue Cross/Blue Shield of Iowa and South Dakota, will pay $6.875 million to employers and their workers who were denied discounts they should have received for health services.

February 17, 1999

PENSION AGENCY HOSTS NATIONAL CUSTOMER SERVICE DAY

Archived News Release — Caution: Information may be out of date.

Regional offices of the Pension and Welfare Benefits Administration (PWBA) will host a nationwide "Employee Benefits Customer Service Day" on a Saturday, March 20, 1999 between 9:00 a.m. and 4:00 p.m.

February 8, 1999

LABOR SECRETARY NAMES CHAIRS FOR ERISA ADVISORY COUNCIL

Archived News Release — Caution: Information may be out of date.

Secretary of Labor Alexis M. Herman today named Barbara A. Uberti of Wilmington, Del. as chair of the Advisory Council on Employee Welfare and Pension Benefit Plans and Dr. Thomas J. Mackell, Jr. of Santa Fe, N.M. and New York City as its vice chair.

February 2, 1999

KENTUCKY COUPLE INDICTED FOR EMBEZZLING PENSION ASSETS

Archived News Release — Caution: Information may be out of date.

A federal grand jury has indicted a Lexington, Ky. couple for embezzling approximately $7,000 from their company’s profit sharing plan, according to the U. S. Department of Labor.

February 1, 1999

LABOR DEPARTMENT SETTLES LAWSUIT WITH FORMER TRUSTEES OF MARYLAND 401(K) PLAN

Archived News Release — Caution: Information may be out of date.

The U. S. Department of Labor has obtained a consent judgment appointing an independent trustee to manage the 401(k) plan of Applied Research Corp. of Landover, Md., and requiring two of the company’s former owners to repay $120,940 in restitution and civil penalties for failing to remit employee and employer contributions owed to the plan.

January 28, 1999

LABOR DEPARTMENT FILLS PENSION POST OF DEPUTY ASSISTANT SECRETARY

Archived News Release — Caution: Information may be out of date.

Leslie B. Kramerich has been appointed to the position of Deputy Assistant Secretary for Policy of the Pension and Welfare Benefits Administration (PWBA) by Secretary of Labor Alexis M. Herman. Kramerich also is delegated the duties of PWBA’s Assistant Secretary until a permanent candidate is appointed to fill the post.

January 28, 1999

Former Fresno Pension Administrator Pleads Guilty To Embezzlement

Archived News Release — Caution: Information may be out of date.

San Francisco - Charles V. Mugrdechian, Jr., pled guilty January 25, 1999, in U.S. District Court for the Eastern District of California, Fresno, to three counts of embezzlement from the Mid-Valley Employers Trust Group Insurance Trust (also known as Key Advantage Trust), a trust that was set up to provide medical insurance to the employee welfare benefit plans of small employers, the U.S. Department of Labor reported today.

January 28, 1999

Labor Department Proposes Rule On Electronic Communications And Recordkeeping By Employee Benefit Plans

Archived News Release — Caution: Information may be out of date.

The U.S. Department of Labor today issued proposed regulations addressing electronic communications of certain information by employee benefit plans and minimum standards for maintenance and retention of employee benefit records in electronic form.

January 25, 1999

FIVE BENEFITS PROFESSIONALS NAMED TO ERISA ADVISORY COUNCIL

Archived News Release — Caution: Information may be out of date.

Secretary of Labor Alexis M. Herman today announced the appointment of five new members to the Advisory Council on Employee Welfare and Pension Benefit Plans who will represent various sectors of the employee benefits field.

January 25, 1999

Memphis Pension Plan Officials Sued By Labor Department

Archived News Release — Caution: Information may be out of date.

The U.S. Department of Labor filed a lawsuit against the American Technical Institute of Memphis, Tenn. alleging that the institute failed to timely transmit employee and employer contributions owed to the institute’s money purchase pension plan.

January 19, 1999

MISSOURI WELFARE PLAN EMPLOYEE INDICTED FOR EMBEZZLING FUND ASSETS

Archived News Release — Caution: Information may be out of date.

The director of the health and welfare fund of the International Leather Goods, Plastics, Novelty and Service Workers’ Union in St. Louis, Mo., was indicted on three counts of embezzling approximately $4,500 from the fund.

January 4, 1999

Public Hearing Set On Proposed Claims Procedures

Archived News Release — Caution: Information may be out of date.

The U.S. Department of Labor today announced its intention to hold a public hearing Feb.17 and 18 and, if necessary Feb. 19, 1999, on a proposed rule governing employee benefit claims procedures.

December 30, 1998

Madison Wis. Corporate Trustee Ordered To Restore More Than $50,000 To Plan For Federal Pension Law Violations

Archived News Release — Caution: Information may be out of date.

The corporate trustee of a 401(k) and profit sharing plan in Madison, Wis., was ordered to restore more than $50,000 to the plan for making imprudent investments on participants’ behalf and for authorizing the plan to engage in conflict-of-interest transactions in violation of the federal pension law.

December 29, 1998

Court Grants Preliminary Injunction, Continuing Freeze Of Assets Of Trustees And Administrator Of New York-Based Health Program

Archived News Release — Caution: Information may be out of date.

(Also issued from New York as NY 232 on Dec. 28, with the following headline -Federal Court Names Independent Fiduciary to Take Over Elmont, New York-Based Health Insurance Plan — Affiliated with Firm Based in Great Neck, Plan Owes $25 Million in Claims in 32 States)

December 22, 1998

Judge's Ruling Concludes Final Piece Of Lawsuit Against Multiple Employer Welfare Plan Sued For Unpaid Claims

Archived News Release — Caution: Information may be out of date.

In an opinion handed down in the federal district court in Orlando, a long-running lawsuit of the U.S. Department of Labor against the Orlando-based Reinecke Agency, doing business as Dealers Association Plan (DAP), is essentially concluded.

December 18, 1998

Engineering Executives Ordered To Repay Company Pension Plan

Archived News Release — Caution: Information may be out of date.

A federal court ordered a Norcross, Ga. couple to pay $66,472 over four years to a pension plan sponsored by the Harris Engineering firm as restitution for using the plan’s assets to make a series of imprudent loans to friends and associates.

December 18, 1998

DOCTOR AND WIFE PLEAD GUILTY TO PENSION PLAN FRAUD

Archived News Release — Caution: Information may be out of date.

A Bucks County, Penn. doctor and his wife pleaded guilty of conspiring to unlawfully use of employee benefit funds and to money laundering. Their pleas were entered Dec. 14 before Judge William H. Yohn, Jr. in the U.S. District Court for the Eastern District of Pennsylvania.

December 15, 1998

Overland Park Businessman Pleads Guilty To 401(K) Plan Embezzlement

Archived News Release — Caution: Information may be out of date.

The former owner of an Overland Park, Kan. company pleaded guilty to a one-count information charging him with embezzling assets from his company’s 401(k) plan. According to the guilty plea filed Dec.11, Allen Sander, acting as sole trustee of the Shamrock Services Company Employees’ Saving Plan, a 401(k) defined contribution plan, allegedly embezzled plan assets, including employee contributions between July 1991 and January 1996. The plan covered 15 employees.

December 15, 1998

EBSA Press Release: Court Freezes Assets of New York Health Program [12/15/1998]

Archived News Release — Caution: Information may be out of date.

For more information call: (202) 219-8921

The Department of Labor has obtained a temporary restraining order freezing the assets of the trustees of the International Workers' Guild health plan, two affiliated organizations and their principals for mismanaging the assets of the health plan covering participants in 21 states.

December 15, 1998

St. Paul Corporation Sued By Labor Department For Violating Federal Pension Law

Archived News Release — Caution: Information may be out of date.

The U.S. Department of Labor filed a lawsuit alleging that a St. Paul corporation inappropriately valued its own common stock held as an investment by one of its two corporate pension plans at book rather than fair market value.