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News Release

Albuquerque Firm And President Sued Over 401(K) Plan Investments

Archived News Release — Caution: Information may be out of date.

The U. S. Department of Labor has sued Miletus Associates Inc. and its president for making over $120,000 in improper transfers and a loan from the company’s 401(k) plan to the defendants.

Miletus Associates is an Albuquerque, N.M.-based engineering firm which manufactures airborne surveillance equipment. The company’s 401(k) plan covered 29 participants and had $371,052.57 in assets as of February 1996.

The Labor Department lawsuit alleges that Miletus Associates and its president Donald Trone violated their duties under the Employee Retirement Income Security Act (ERISA). The defendants allegedly:

  • transferred $79,444.21 of plan assets to the company which subsequently retained the money;
  • loaned $48,713.19 to Trone which was never collected and is currently delinquent;
  • failed to file annual reports which included a financial statement of assets and liabilities valued at their current value; and
  • distributed retirement benefits to plan participants based on an outdated valuation of plan assets.

The lawsuit seeks a court order to require that the defendants reimburse the plan for any losses resulting from their improper actions and to undo transactions prohibited by federal pension law. It also seeks to remove the fiduciaries from their positions with the plan and to permanently bar them from serving in positions of trust to this or any other plan governed by ERISA.

This case resulted from an investigation conducted by the Dallas Regional Office of the department’s Pension and Welfare Benefits Administration into alleged violations of ERISA. The lawsuit was filed on June 26 in federal district court in Albuquerque.

(Herman v. Miletus Associates, Inc.)
Civil Action No. 98-778JC-LSG

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.

Archived News Release — Caution: Information may be out of date.

Phone Number: 202.219.8921

Employee Benefits Security Administration
June 30, 1998
Release Number
USDL: PWBA-98-55-6-30