US - The former CEO of USA Mining Inc has been instructed by a federal district court to restore almost US$5m to the pension plans of Standard Coosa Thatcher (SCT) Yarns Inc.
The $5m is to repay improper loans, transfers and investments defendant Dan Geiger urged the SCT Yarns plans to make in companies in which he owned an interest.
Geiger and affiliated corporate defendants have also been permanently barred from providing services or servicing in a fiduciary capacity to plans governed by the Employee Retirement Income Security Act (ERISA) in the future.
Said secretary of labor Elaine Chao: “Workers counted on these pension plans and the Department [of Labor] is pursuing every legal avenue to recover the stolen funds.”
Geiger was sued by the US Labor Department in 2004 for his criminal activities involving the plans between 1999 and 2001. He is currently serving 108 months in a California federal prison.
This week's edition of Professional Pensions is out now.
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