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Release Date: 10/10/2002
Release Number: V-31
Contact Name: Brad Mitchell
Phone Number: 312.535.6976
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Cincinnati, Ohio - The U.S. Department of Labor sued the
administrator of the pension plan of defunct Mershon Metal Maintenance, Inc. of
Cincinnati, Ohio, on October 7 for failure to forward $14,872 in employee
contributions to the plan, as well as $21,222 in lost opportunity costs. |
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According to the lawsuit, Joseph Mershon of Speedway,
Indiana,
corporate president and administrator of the defined contribution plan, violated
the Employee Retirement Income Security Act (ERISA) by commingling plan assets
with those of Mershon Metal. He allegedly failed to segregate the plan assets
from corporate moneys and subsequently failed to remit these assets to the plan.
In addition, he failed to comply with two subpoenas for plan records from the
Labor Department, resulting in subpoena enforcement actions by the department in
federal district court, and he allegedly provided inaccurate statements to
participants about the plan account. |
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The suit also alleges that Mershon failed to obtain a
fidelity bond as required by law, to create written plan documents and to file
annual financial reports with the federal government. |
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The suit seeks the court to require Mershon to restore all
losses with interest, to replace him with an independent fiduciary to administer
the plan and to permanently bar Mershon from serving in a trust position to any
plan governed by ERISA. The Cincinnati regional office of the
department’s Pension and Welfare Benefits Administration (EBSA) conducted the
investigation leading to the filing of the case in federal district court in
Cincinnati. |
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The plan was established in 1989 and, over the life of the
company, covered 15 participants. |
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Employers and workers can contact the Cincinnati Regional
Office at 859.578.4680 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. Joseph Mershon
Civil Action No. CV-1-02-717) |
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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. |
