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Release Date: 05/14/2001
Release Number: III-01-05-14-036-MD
Contact Name: Rita Ford
Phone Number: 202.219.8921
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Philadelphia, Pennsylvania - The trustees of the
401(k) profit sharing plan for GNM and Associates, Inc. in Silver Spring,
Maryland, were removed from their positions, in consent judgments obtained
on May 10, 2001, by the U.S. Department of Labor. |
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In addition to the trustees’ removal, one consent
judgment stipulates that trustee William L. Allen Jr. must pay the plan
$6,714 and forfeit any remaining account balance in the plan to be
distributed among the plan’s participants. An additional $5,786 is being
paid to the plan out of the remaining assets of GNM, which is in
bankruptcy. A second consent judgment permanently bars trustee Elizabeth
Bateman from serving any plan governed by the federal pension law, and
appoints Fred S. Shapiro & Associates, Inc. as the independent
fiduciary to oversee the assets of the plan and to efficiently terminate
it. |
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The actions resulted from a lawsuit filed by the
department against Allen and Bateman in January 2001 that alleged they
failed to timely transmit employees’ contributions to the plan and used
the funds for the corporation’s operating expenses in violation of the
Employee Retirement Income Security Act (ERISA). |
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GNM was an engineering firm that established a 401(k)
plan to allow its employees to defer a portion of their income and have it
deposited in the plan on their behalf. |
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“Our goal is to ensure that consumers know that the
department is committed to protecting the benefits promised by
employers,” said Mabel Capolongo, Philadelphia regional director of the
Pension and Welfare Benefits Administration. “Employers and workers can
reach us at 301.713.2000 for help with any problems relating to
private-sector pension and health plans.” |
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The consent judgments resulted from an investigation by
the Washington District Office of PWBA into violations of ERISA. They were
entered in the federal district court in Greenbelt, Maryland. |
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(Chao v. Bateman
Civil Action No. AW-01-0055) |
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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 202.693.7775. |
