Archived News Release — Caution: Information may be out of date.
Jacksonville, Florida - The U.S. Department of Labor has obtained a temporary restraining order appointing an independent fiduciary to manage the pension plan of Search Alliance of Fernandina Beach, Florida. The order also removes and permanently bars the company and former owner, Thomas A. Brynes, from acting as fiduciaries to the plan.
The Labor Department sued the defendants in 2004 for improperly making $105,235 in loans from the company’s pension plan to benefit themselves and for failing to collect money owed on the loans. These defendants were ordered to restore $141,638 to the plan in April 2006 and to cease service as fiduciaries to the plan by the end of October 2006. The department sought the appointment of an independent fiduciary after discovering the defendants failed to comply with the April 2006 court order and several unexplained transfers of funds from the plan accounts Search Alliance is a placement firm for executives and other professionals. The company sponsored the pension plan for 19 participants and had $122,449.27 in plan assets, according to the latest data available to the department.
“The Labor Department is committed to protecting the benefits of America’s workers and retirees,” said Howard Marsh, director of the regional office in Atlanta of the Labor Department’s Employee Benefits Security Administration (EBSA). “We will not hesitate to hold accountable those who misuse workers’ retirement assets.” Employers with similar problems, who are not yet the subject of an investigation by EBSA, may be eligible to participate in the department's Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to make workers whole but allows them to avoid EBSA enforcement actions, civil penalties and any applicable excise taxes. For more information see www.dol.gov/ebsa.
The case resulted from an investigation conducted by EBSA’s district office in Miami. Employers and workers can reach the Miami office at 954.424.4022 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.
(Chao v. The Search Alliance) Civil Action No. 3:05-CV-852-J-16HTS U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.
Archived News Release — Caution: Information may be out of date.
