US - The Department of Labor (DoL) has sued Macristy Industries and company president Jeffrey Barlow over the alleged misuse of more than $1.8m in assets from the firm's cash balance plan.
The suit accused the defendants of improperly transferring nearly $2.6m in plan assets to accounts of the company and filing false or no annual reports with the DoL.
“The defendants allegedly used approximately $773,186 for legitimate plan benefits and expenses and diverted the balance -- approximately $1,823,813 -- to pay for company operations,” the DoL said in a release.
Secretary of Labor Elaine Chao added that legal action would seeks full restitution, compliance with federal disclosure requirements and plan integrity going forward.
“The department’s suit seeks a court order requiring the defendants to restore to the plan all losses with interest, to disgorge all profits received, and to require the company to file appropriate Form 5500 annual reports.”
The suit also asked the court to bar Barlow from service as a fiduciary to any ERISA-covered plan and to appoint an independent fiduciary to be trustee of the plan.
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