DOL Wins $597,700 for Michigan Funds

On Mar. 19, trustees and the ex-administrator of the Millwrights Local 1102 Supplemental Pension Plan and Health Plan, which are linked to United Bhd. of Carpenters Local 1102 in Warren, Mich., agreed to restore $597,775 to the plans.  Further, U.S. Dist. Judge Avern L. Cohn (E.D. Mich., Carter) ordered the trustees to resign their positions with the plans.

Cohn’s judgment resolved a suit filed Aug. 23, 2000, by the Dep’t of Labor against administrator Automated Benefit Services, Inc. and trustees Walter R. Mabry, Jerry D. Moore, Ronald M. Krochmalny, Keith R. Scrutton, Milford E. Woodbeck, Sr., and Roy Shields. Mabry is also the executive secretary-treasurer of UBC’s Mich. Reg’l Council of  Carpenters  & Millwrights. Allegedly, the defendants violated pension laws by 1) paying unreasonable compensation and fees to ABS, 2) failing to prudently invest the plan’s cash assets, 3) paying excessive fees relating to the collection of employer contributions to the plans, and 4) making mortgage loans to participants which did not comply with the terms of the pension plan document.

Cohn also ordered the pension plan to comply with the requirements of the Employee Retirement Income Security Act of 1974 in any future activity and gave Nat’l City Bank of Cleveland the authority to manage the mortgage loan portfolio of the pension plan. Reportedly, the bank then exercised that authority and sold the pension plan’s portfolio for $1,173,813.40. [DOL 3/20/02]

$289,000 Allegedly Stolen from New York Fund
Barbara Monfre, pension fund administrator for the Int’l Bhd. of  Elec. Workers Local 3 in N.Y.C. was arraigned Mar. 22 in U.S. Dist. Court in Manhattan on charges of embezzling approximately $289,000 from the local’s Elevator Div. Retirement Plans. [DOL 3/22/02]