The U.S. Department of Labor has obtained a preliminary injunction against two Lexington, Ky.-based pension plan fiduciaries for allegedly using nearly $40 million of retirement funds as their own personal bank account.
George Hofmeister and Bernard Tew of Bluegrass Investment Management LLC – former fiduciaries of the Hillsdale Salaried, Hillsdale Hourly, Revstone Casting Fairfield GMP Local 359 and Fourslides Inc. pension plans based in Lexington, Ky. – were accused of engaging in a series of prohibited transactions resulting in the misuse of $12.1 million form the Hillsdale Salaried pension plan, about $22.5 million for the Hillsdale Hourly pension plan, $4.4 million from the Revstone plan and $500,000 from the Fourslides Inc. pension plan.
"Those entrusted with managing these pension funds have shown an utter disregard for the workers, who are relying on the money for their retirement," said Phyllis Borzi, the assistant secretary of labor who heads the Employee Benefits Security Administration. "Our aim is to make this right for those workers."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
