Inglewood 401(K) Plan Trustee Charged With Misusing Pension Money

Archived News Release — Caution: Information may be out of date.

The U. S. Department of Labor filed a lawsuit yesterday against the owner of Computer Software Analysts, Inc., based in Inglewood, Calif., for failing to transmit employer and employee contributions to the company’s 401(k) plan.

The company provided technical and engineering services to such federal government agencies as the National Aeronautics and Space Administration and the Department of Defense. The 401(k) profit sharing plan covered 108 participants

The Labor Department lawsuit alleges that Levi J. Carey Sr. — who also held the position of trustee to the plan — failed to transmit to the plan contributions withheld from employee paychecks and the company’s matching contributions. The money was to be transmitted to Aetna Life Insurance Co.

Carey allegedly directed that an amount substantially less than required be remitted to the plan’s Aetna account over the period July 1992 to June 1994. He also is charged with failing to comply with the plan’s rules.

In a related criminal action, Carey pleaded guilty on July 7, 1997 to embezzling not less than $450,000 from the plan. He is awaiting sentencing in the criminal case.

This case resulted from a criminal investigation by the Los Angeles Regional Office of the Pension and Welfare Benefits Administration into alleged violations of the Employee Retirement Income Security. The lawsuit was filed on Jan. 28 in Federal District Court for the Central District of California at Los Angeles.

(Herman v. Carey)
Civil No. CV 98-710LGB
(U. S. v. Hetrick)

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Archived News Release — Caution: Information may be out of date.

Contact Name: GLORIA DELL
Phone Number: 202.219.8921