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Release Date: 02/04/2003
Release Number: BOS 2003-016
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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New York, New York - The U.S. Department of
Labor filed a complaint on January 17, 2003, alleging multiple violations
of the Employee Retirement Income Security Act (ERISA) by plan officials
for the Production Workers Union Local 148 welfare and pension plans. |
Named as defendants were Joseph Nardone, Jr., the
current plan administrator, who, in 1998, was removed from his position as
the local’s president as well as from his position as the trustee for
the welfare and pension plans, and Ralph Somma, president of Brueton
Industries, a contributing employer to the plans who is the current
employer-trustee. |
“This action demonstrates our commitment to protect
the hard-earned benefits of American workers,” said Francis Clisham,
director of the department’s New York Regional Office of the Employee
Benefits Security Administration, which investigated the case. |
According to the department’s suit, filed in federal
district court in Newark, New Jersey, the defendants imprudently caused
the welfare plan to purchase property for $300,000, intended for use as a
parking lot near the funds’ office, on the same day that the seller
purchased the property for $125,000. |
The department’s complaint also alleged that the
defendants caused the welfare plan to pay benefits for Sylvia Nardone even
though she was not eligible to receive benefits; the defendants caused the
plans to improperly pay for Nardone, Jr.’s attorney representing him in
the Local 148 trusteeship litigation; the defendants caused the welfare
plan to pay the salary plus expenses for former Local 911 president Edward
Bigham, Jr., even though he did not perform commensurate services for the
plan, and that Nardone Jr. caused the welfare fund to pay for expenses
incurred by the pension plan providing benefits to employees of the union
and the plans from February 1996 through July 1999. |
The department is seeking to restore to the plans all
losses, permanently bar the defendants from serving any ERISA-covered
plans, and remove Sylvia Nardone as an eligible welfare plan benefit
recipient. The department is also seeking to have the local union repay
the plans for the fees paid to Nardone Jr.'s attorney. Finally, the
department seeks to offset the individual retirement plan account balances
of Nardone Jr. and Somma to repay amounts they owe to the plan. |
The membership of Local 148 includes of a variety of
factory workers in the five boroughs of New York, New Jersey and Long
Island. In 1997, Local 148 absorbed the membership of United Services
Employees Union Local 911. The Local 148 membership has fluctuated over
the years. In 1997, there were approximately 2000 members. |
Employers and workers can contact the New York Regional
Office at 212.337.2462 or EBSA’s toll free number, 1.866.444-EBSA
(3272), for help with any problems relating to private-sector pension and
health plans. |
(Chao v. Joseph Nardone, Jr., Ralph Somma, et al.)
Civil Action No. CV-03-181 (William J. Martini) |
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 202.693.7755. |
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