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Release Date: 09/25/2002
Release Number: 02-18
Contact Name: Gloria Della
Phone Number: 202.693.8666
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Dallas, Texas - Beaumont, Texas-based First National Security Corporation and its
owner were sued by the U. S. Department of Labor on September 20, 2002 to recover
employee contributions that were not forwarded to the health plan’s
third-party administrator and to restore health benefits owed to participants. |
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“Plan officials have a duty to properly manage plans in a way that benefits
employees,” said Steven Eischen , Regional Director of the Dallas Office of
the Pension and Welfare Benefits Administration (EBSA). “Our action
today is designed to restore plan assets that were improperly used to benefit
the employer.”
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The Labor Department lawsuit, filed in federal district court in Beaumont,
Texas, alleges that the corporation and its owner, Mark Hyland violated the
Employee Retirement Income Security Act (ERISA) by failing to remit employee
contributions to the plan’s third party administrator during August and
September 1999. |
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The department’s suit seeks to require that the defendants restore to the
plan all losses with interest and restore to participants any benefits they
would have received under the plan had the contributions been made. |
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First National Security Corporation is a mortgage lender that originates and
funds loans as well as purchases and sells mortgage notes. The health
plan, which was partially self-insured, covered 211 employees of First National
Security Corporation and its subsidiary Sterling Lending Corporation in July
1999. Sterling Lending is now bankrupt. |
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The suit resulted from an investigation conducted by the Dallas Regional
Office of EBSA. Employers and workers can reach the Dallas Regional Office
at 214.767.6831 or EBSA’s Toll-Free Employee & Employer Hotline number,
1.866.275.7922, for help with
problems relating to private-sector pension and health plans. |
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(Chao v. First National Security Corp.) |
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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 202.693.7755. |
