Over $9.3 million of a Minneapolis manufacturing company’s employee stock ownership plan after the fund overpaid for company stock in 2011 was reclaimed by the U.S. Department of Labor (DOL).
Employee Benefits Security Administration Acting Regional Director Mark Underwood said the move would ensure that employees would receive their retirement funds.
“This settlement restores employees’ hard-earned retirement funds of the Kurt Manufacturing Company Inc. Employee Stock Ownership Plan, and ensures executives responsible for the overpriced purchase of stock receive no future benefits from their decision,” he said.
Underwood added that the agency was dedicated to ensuring that employees receive their benefits and would hold companies found infringing on the program responsible.
“Fiduciaries must always work in the best interest of the fund,” Underwood said. “The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs and holding those who violate the law accountable.”
DOL reported that the fund overpaid for company stock in 2011 and filed a lawsuit in which the Reliance Trust Company had to give back over $8.4 million, according to a news release.
The news release reported that DOL’s Employee Benefits Security Administration (EBSA) aids with private retirement and health plans, along with helping to raise awareness of “the knowledge level of plan participants and beneficiaries.”
