Sunteți pe pagina 1din 1

News Release____________

U.S. Department of Labor For Immediate Release


Pension and Welfare Benefits Administration March 22, 2002
Boston, Mass. Contact: Ted Fitzgerald
BOS 2002-057 Phone: (617) 565-2074

401(k) Plan Trustee Agrees To Repay Participants Following


Legal Action By U.S. Labor Department
SPRINGFIELD, Mass. -- Alan Scrivner, the president of bankrupt DataProfit Corp., has agreed to restore
over $43,000 to five participants in the company’s 401(k) profit sharing plan, the U.S. Labor Department
announced today.

The agreement is part of a Feb. 27 consent judgment that resolves a Labor Department lawsuit filed in
November alleging violations of the Employee Retirement Income Security Act, according to James
Benages, Boston regional director for the department’s Pension and Welfare Benefits Administration.

The suit was filed in U.S. District Court in Springfield. The Labor Department alleged that Scrivner
violated his fiduciary duties under ERISA by allowing $85,000 in loans from five plan participants to be
deposited into the account of DataProfit Solutions, a party-in-interest of which Scrivner is the majority
owner. This is a prohibited transaction under ERISA.

The suit also alleged that from November 2000 through March 2001, Scrivner failed to ensure that
employee contributions and loan repayments totaling more than $370,000 were forwarded to the plan. In
August, the department filed an adversary proceeding against Scrivner in his Chapter 7 bankruptcy
proceeding to designate the withheld funds and improper loans as non-dischargeable debts. On March 20,
2002, the U.S. Bankruptcy Court approved a consent judgment designating Scrivner's $43,000 restitution
obligation a non-dischargeable debt.

Scrivner neither admits nor denies the allegations. Under the order he agrees to pay the five plan
participants restitution of $43,000 plus accrued interest. He is also permanently enjoined from serving as a
fiduciary to any ERISA-covered employee benefit plan and from future violations of ERISA.

The judgment was predicated upon payment of $475,000 to the plan by its insurer to make up for
contributions and loan repayments that were not forwarded to the plan, plus legal fees. That payment has
been made. Steven Weiss, interim trustee of DataProfit Corp. has received authority from the court to
oversee the plan’s termination and distribution of contributions to participants and beneficiaries.

The Department’s legal action against the defendants followed an investigation by the Boston Regional
Office of the Pension and Welfare Benefits Administration, located in Room 575 of the John F. Kennedy
Federal Building in Boston. The telephone number is 617-565-9600. Long distance callers may reach the
office through PWBA’s toll free hotline: 1-866-275-7922.

###

(Chao v. Alan Scrivner; DataProfit Corporation 401(k) Profit Sharing Plan (01-CV-30202-FHF)
(Chao v. Alan Scrivner. 01-42770-HJB)
_____________________________________________________________________________________________
U.S. Labor Department news releases are accessible on the Internet at www.dol.gov. The information in this release
will be made available in alternative format upon request (large print, Braille, audio tape or disc) from the COAST
office. Please specify which news release when placing your request. Call 202-693-7773 or TTY 202-693-7755.

S-ar putea să vă placă și