Compliance January 2, 2008

EBSA Announces $1.5B in Monetary Enforcement Results

Bradford P. Campbell, assistant secretary of labor for the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), on Monday announced that the agency achieved monetary results of $1.5 billion and 115 criminal indictments in fiscal year 2007.
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EBSA closed 3,236 civil investigations in Fiscal Year 2007, and nearly 75% of those resulted in correction of violations under the Employee Retirement Income Security Act (ERISA), the announcement said. The agency also achieved a 43% increase in the number of criminal investigations closed with either a guilty plea or with a criminal conviction.

Criminal investigations, in conjunction with other law enforcement agencies, including the DoL’s Office of Inspector General, led to the indictment of 115 individuals for crimes involving pension, health, and other benefit programs.

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According to the announcement, approximately $96 million of the 2007 results were achieved through informal complaint resolution under the agency’s participant assistance program. The Voluntary Fiduciary Correction Program, used by employers, plan officials, service providers, and other fiduciaries to report and correct violations of ERISA, received 1,451 applications and produced $130 million in results.

A fact sheet about agency results is available on EBSA’s Web site at www.dol.gov/ebsa.

In addition, the DoL’s Wage and Hour Division announced record wage recovery for FY 2007. The 341,624 workers receiving recovered back wages is the second largest number since 1993, and the amount of those wages – $220,613,703 – is the highest ever, the announcement said.

The U.S. Department of Labor’s Office of Labor-Management Standards (OLMS) reported $32 million in court-ordered union fund restitutions for workers in FY 2007, and the Occupational Safety and Health Administration (OSHA) also reported a successful enforcement year.

The Markets January 2, 2008

New Fund Seeks Stocks Poised to Double in a Year

SBAuer Funds has launched the Auer Growth Fund (AUERX), which looks for stocks poised to double in value within a year.
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Father and son team Bryan and Robert Auer plan to actively manage the fund, anticipating turnover of 200% or an average holding time of six months, according to a company announcement. The Auers’ proprietary multi-step stock screening process looks for companies exhibiting specific characteristics which the Auers believe is indicative of 100% growth within 12 months.

By focusing on individual stocks that are undervalued with strong growth potential, the fund offers investors a good alternative for their money whether the market is up or down, the announcement said. The strategy is highly disciplined and repeatable, requiring stocks meet a number of established criteria, regardless of style or company size.

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Investments in the fund require a minimum initial investment of $10,000 and can be made through E*Trade, Fidelity, TD Ameritrade, and Scottrade. A prospectus can be requested by calling 888-711-AUER (2837).

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