|
|
|
Release Date: 10/22/2002
Release Number: III-02-10-22-131-WP
Contact Name: Gloria Della
Phone Number: 202.693.8666
|
Printer
Friendly Version
|
|
|
|
Philadelphia, Pennsylvania - The U.S. Department
of Labor obtained a consent order with the trustees of the Sutersville
Lumber Company employee stock ownership plan (ESOP), providing for
restoration of $216,820 to the plan and appointment of an independent
fiduciary to replace the fiduciaries. |
|
Under the court order, David M. Lipkin was appointed as
the independent fiduciary to manage the plan. The defendants agreed to pay
civil penalties for violations of the Employee Retirement Income Security
Act (ERISA). In addition, the trustees are permanently barred from serving
any plan governed by ERISA and will not receive any benefits from the
plan. |
|
The Labor Department sued plan fiduciaries Jay Miller,
Richard Nesbit and Rona Nesbit and Radnor Capitol Management, Inc. for
improperly transferring more than $500,000 in profit sharing plan assets
to pay off the ESOP loan, which was guaranteed by Sutersville Lumber. |
|
The family-owned lumber yard and home improvement
center was liquidated in 1997. The company sponsored a profit sharing plan
and an employee stock ownership plan for its employees. These plans were
later merged, with $3,096,814 in assets. |
|
The consent order, entered on October 15, 2002 in
federal district court in Pittsburgh, resulted from an investigation
conducted by the Philadelphia Regional Office of the department’s
Pension and Welfare Benefits Administration. |
|
(Chao v. Miller
Civil Action No. 99-404) |
|
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. |
