Federal Judge Approves Plan Distribution, Termination
A federal judge in Ohio issued an order allowing the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) to distribute more than $600,000 in 401(k) assets to ex-employees of American Systems Consulting, Inc., according to a news release.
An EBSA lawsuit against the company and its owners, Cliff and Loree Gallatin, charged that American Systems improperly diverted plan funds to bolster the company’s general accounts. The Gallatins have already paid $100,860, the government release said.
The court order designates Larry Lefoldt as independent fiduciary to oversee distributing the rest of the plan assets and then its termination.
The suit resulted from an investigation conducted by EBSA’s Cincinnati regional office.
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