Marquette Businessmen Make Restitution To 401(K) And Health Participants

Archived News Release — Caution: Information may be out of date.

The U. S. Department of Labor has obtained a consent order and judgment requiring the trustees of the Choice Advantage Auto Group 401(k) and cafeteria plans to waive all rights to distributions from the 401(k) plan until until all other participants in the plan receive their full benefits.

Defendants Richard Lutey and Larry Eveland have restored $89,115 to the 401(k) plan and $40,809 to the cafeteria plan. The defendants also are permanently barred them from serving any plan governed by the Employee Retirement Income Security Act (ERISA).

Lutey and Eveland, the co-owners of Specker Motor Sales Company and E & L Enterprises, Inc, were named as defendants in the lawsuit filed simultaneously with the judgment on (DATE). The companies were car dealerships which filed for bankruptcy in 1997. The plans, which covered as many as 94 and had assets of $962,101, subsequently were terminated and the assets of the 401(k) plan were distributed to participants.

According to the lawsuit, the defendants failed to remit voluntary employee contributions and loan repayments to the 401(k) plan and failed to remit employee premium contributions to the cafeteria plan.

Joseph R. Menez, Cincinnati Regional Director for the Pension and Welfare Benefits Administration (PWBA) said, “This settlement completely restores pension benefits to participants who were shortchanged. It also puts plan fiduciaries on notice that they must perform effectively so as not to adversely affect the benefits of plan participants.

The case resulted from an investigation by PWBA’s Cincinnati Regional Office into violations of ERISA. The case was filed on March 9 in federal district court in Marquette, Mich.

(Herman v. Lutey)
Civil Action No.2:98 CV-91

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Archived News Release — Caution: Information may be out of date.

Contact Name:GLORIA DELLA
Phone Number: 202.219.8921