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Release Date: 07/30/2001
Release Number: 01-132
Contact Name: Michael Shimizu
Phone Number: 206.553.7620
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San Francisco, California - The U.S. Department
of Labor announced today that Franz C. Stangl III of Salt Lake City has
repaid $100,000 to the Davidson Lumber Employee Retirement Plan to resolve
a complaint by the department that he took part in a transaction
prohibited by the Employee Retirement Income Security Act. |
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Stangl made the payment under terms of a consent
judgment entered July 9, 2001, in the U.S. District Court for the District
of Utah in Salt Lake City. |
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According to Julianne Majette, acting regional director
for the Pension and Welfare Benefits Administration here, David Davidson,
owner of the defunct Davidson Lumber Sales Co. and fiduciary to the
Davidson Lumber Employee Retirement Plan, authorized a loan from the plan
to a business in which Stangl had a significant interest. |
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Since Stangl and Davidson were also business partners,
the transaction was in violation of ERISA which prohibits loans to parties
in interest to an employee benefit plan. |
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In addition to monetary repayment, Stangl was enjoined
and restrained from exercising authority or control of any ERISA-covered
pension or welfare benefit plan including disposition of plan assets or
administration of any such plan for ten years. |
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Stangl neither admitted nor denied the Labor
Department’s allegations. |
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“Although it has taken some time to reach resolution,
we believe that this is a very satisfactory conclusion and a benefit to
the past employees of Davidson Lumber Sales,” Majette said. |
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(Chao vs Davidson Lumber Sales Inc.et al
Civil Action No. 2:90-CV-00716) |
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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. |
