By Pension and Benefits Editorial Staff
The U.S. District Court for the Middle District of Tennessee, Nashville Division, has approved a settlement between the U.S. Department of Labor, Zander Group Holdings Inc., Stephen Thompson and Jeffrey Zander involving the company's Employee Stock Ownership Plan (ESOP).
An investigation by the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) found in September 2011, the Zander Group Holdings Inc. ESOP paid more than fair market value when it purchased a 49 percent interest in Zander Insurance in violation of the Employee Retirement Income Security Act (ERISA). In keeping with the parties' settlement agreement, defendants will pay $3,818,181 in restitution to the ESOP. The department also assessed a civil penalty of $381,818 against the defendants.
“Individuals and companies acting on behalf of retirement plan participants must act in good faith and in their workers' best interests,” said EBSA Regional Director Isabel Culver, in Atlanta, Georgia. “The U.S. Department of Labor will continue to work to protect the retirement plans of hardworking Americans.”
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.
Source: DOL News Release.
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