DoL Seeks to Recover More Than $400K for Benefit Plans

The U.S. Department of Labor (DoL) has filed a complaint in federal court seeking to restore $436,322.07 to two benefit plans of Columbus-based Clark Graphics.

Based on the findings of an investigation by the department’s Employee Benefits Security Administration (EBSA), the lawsuit alleges that the plans’ administrator, Pension Retirement Planning, along with its President, Marcia Dowdell, failed to account for money deposited to the plans in violation of the Employee Retirement Income Security Act (ERISA).

Additionally, the suit alleges that the owners of Clark Graphics – Mary Clark, James Clark, and Stephen Clark – failed in their fiduciary responsibilities as plan trustees by neglecting to monitor the actions of Dowdell and Pension Retirement Planning. They failed to review and reconcile account statements for EBSA Form 5500 filings, review participant distribution calculations, and require Pension Retirement Planning to issue participant statements.

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The suit alleges that Dowdell failed to account for $326,147.22 out of more than $1.1 million that was transferred into a trust account maintained by Pension Retirement Planning on behalf of the Clark Graphics Profit Sharing Plan from May 30, 2000, to August 31, 2009. Additionally, Dowdell failed to account for $110,174.85 out of $1 million placed by the Clark Graphics Defined Benefit Plan in the trust during the same period. Dowdell failed to maintain accurate records for participants in both plans; consequently, some participants have not received the correct retirement benefits.

The complaint seeks the restoration of all plan losses for which the defendants are liable, with appropriate interest. It also seeks to permanently enjoin all four individuals from serving as a fiduciary or service provider to any employee benefit plan subject to ERISA.

The case is Solis v. Clark Graphics Inc., et. al.  

Prudential Names CEO of Investment Management Business

David A. Hunt has been named Chief Executive Officer of Prudential Investment Management.

Hunt will oversee all of the asset management businesses that comprise Prudential Investment Management, including its public fixed income, real estate, public equity, private fixed income, mutual fund, and wealth management businesses. His appointment is effective November 9.  

Hunt assumes the new role from Charles Lowrey, Chief Operating Officer of Prudential’s U.S. Businesses, who was promoted in February 2011 to lead the U.S. businesses. Lowrey has continued to oversee Prudential Investment Management in the interim.   

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Hunt joins the company from McKinsey & Company, where he was a senior partner and co-leader of its North American Asset Management practice. Earlier, he led McKinsey’s North American Commercial and Investment Banking Practice.  

Hunt earned a bachelor’s degree in engineering from Princeton University and an MBA in finance and multinational management from the University of Pennsylvania Wharton School. He serves on the board of directors for the Lincoln Center for the Performing Arts and is a life member of the Council on Foreign Relations.

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