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Release Date: 05/15/2002
Release Number: 233
Contact Name: Gloria Della
Phone Number: 202.693.8666
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Dallas, Texas - The U. S. Department of Labor filed
suit May 10, 2002, against the defunct trucking company Eagle Wings Systems Inc.
of Fort Smith, Arkansas, and its owner for misusing assets of the company’s profit
sharing, 401(k) and health plans to benefit themselves. |
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“The Labor Department is committed to the
protection of the benefits and plan assets designated to pay employees those benefits,” said
Steve Eischen, director of the Dallas Regional Office of the department’s
Pension and Welfare Benefits Administration (PWBA). |
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Named as defendants are the company and its
owner Rex Mason. The plans covered truck drivers and office employees of the company, which
ceased operations in October 2000. |
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The suit, filed in federal district court in
Fort Smith, Arkansas, alleges that the defendants violated the Employee Retirement
Income Security Act (ERISA) by transferring profit sharing plan assets to a party in interest, misleading participants
about the status of the health plan and failing to properly administer the
401(k) plan. |
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As relief, the suit seeks a court order to
require that the defendants restore all losses to the plans, with interest,
which resulted from breaches of their fiduciary obligations, correct all
prohibited transactions and, if necessary, to offset any claims which
they may have against the plans by the amount of losses, including lost
opportunity costs resulting from the violations. The suit also asks that
the defendants be permanently barred from serving as
fiduciaries to any plan governed by ERISA. |
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Employers and workers
can reach the Dallas regional office at 214.767.6831 or through the new
Toll-Free Employee & Employer Hotline number, 1.866.275.7922, for help with any problems relating to private-sector pension
and health plans. |
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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. |
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