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Release Date: 11/07/2001
Release
Number: 01-222
Contact Name: Gloria Della
Phone Number: 202.693.8664 |
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Atlanta, Georgia - Commercial Builders, Inc. of
Rocky Mount, North Carolina, its owner, and a pension trustee agreed to pay $95,000 in
lost earnings to the plan and to hire an independent third party administrator
to distribute the restored assets to plan participants, according to settlement
agreements obtained on November 5 by the U.S. Department of Labor. |
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Under the settlement, defendants Michael V.
Barnhill, Sr. and former trustee Paul C. French Jr. are permanently barred from
serving in positions of trust to any plan governed by the Employee Retirement
Income Security Act (ERISA). Former assistant trustee Ken R. Ratzlaff is barred
from serving in such positions for a period of 10 years. The settlement does
allow Barnhill to take action to allocate and distribute to participants the
assets restored to the plan. |
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Commercial Builders, Inc. (CBI), which was solely
owned by Barnhill, was the pension plan administrator. The plan required CBI to
make mandatory annual contributions of 5% of the compensation of eligible
participants. As of December 31, 1990, the plan covered 86 participants and had
$826,763 in assets. As of January 1, 1994, the company had ceased making
contributions to the plan. Subsequently, the plan's assets were distributed to
participants. |
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A suit filed simultaneously with the settlement
alleges that CBI, Barnhill, French and Ratzlaff violated ERISA by using plan
assets to benefit themselves and affiliated companies. The suit alleges the
defendants made numerous prohibited loans from the plan totaling $476,034.88 to
companies owned by them. They also allegedly failed to recover a shortfall in
plan contributions which resulted when the company contributed land valued at
$51,385 to satisfy the company’s 1990 mandatory contribution of $73,172.
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“Our goal is to assure that consumers know
that the department is only a phone call away to help protect the benefits
promised by employers," said Howard Marsh, director of the Atlanta Office of
the department’s Pension and Welfare Benefits Administration (PWBA).
“Employers and workers can reach us at 404.562.2156 for help with any
problems relating to private-sector pension and health plans.” |
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The court actions resulted from an investigation
conducted by the Atlanta Regional Office of PWBA into alleged violations of
ERISA. |
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(Chao v. Barnhill
Civil Action No.
4:01-cv-153-H4) |
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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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