Compliance October 1, 2012

Plan Trustees Sentenced for Embezzling From 401(k)

Trustees of the Irotas Manufacturing Co. Inc. 401(k) plan have been sentenced for embezzling $487,000 from the plan, and have been ordered to pay restitution.
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The sentence resolves a lawsuit based on the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) Cincinnati Regional Office investigation, which found violations of the Employee Retirement Income Security Act (ERISA). The investigation found William H. Kiser and Mary Sue Kiser, who owned Irotas Manufacturing, in Shelbyville, Kentucky, embezzled the funds for their own use between June 17 and August 14, 2008. The Kisers have been sentenced to 15 months in prison and three years of supervised release.

“This sentencing underscores the Department of Labor’s resolve to aggressively pursue those who steal from employee benefit plans,” said L. Joe Rivers, EBSA’s regional director in Cincinnati. “We will continue our commitment to investigating thefts from employee benefit plans under our Contributor Plans Criminal Project, which targets those individuals who threaten the retirement and health benefits of American workers.”

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Products October 1, 2012

BMO Launches Low Volatility Equity Fund

BMO Global Asset Management introduced the BMO Low Volatility Equity Fund, designed to provide long-term returns comparable to U.S. large cap stocks but with less volatility.
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It is commonly believed that investors are rewarded with higher returns for taking on more risk, but BMO’s research shows that this is not generally the case, according to Ernesto Ramos, portfolio manager and head of equities, BMO Asset Management U.S. “In fact, we found that over the last 40 years stocks with the lowest volatility had the highest returns,” Ramos said.

The fund seeks to provide investors with opportunities to diversify as well as more options to mitigate down-side risk, said Barry S. McInerney, Co-Chief Executive Officer, BMO Global Asset Management.

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“Financial advisers are looking for the right tools to help build a diversified portfolio for their clients that effectively responds to volatile market conditions,” said Barry S. McInerney, co-chief executive, BMO Global Asset Management. The BMO Low Volatility Equity Fund seeks to provide investors with opportunities to diversify as well as more options to mitigate down-side risk.

 

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