Texas Businessman Sued Over Diversion Of Pension Assets

Archived News Release — Caution: Information may be out of date.

The U. S. Department of Labor has sued an official of the Odessa,Texas-based Jack Whistler, Inc. Profit Sharing Plan for allowing $97,799 of pension assets to be diverted to an individual affiliated with the plan

The Jack Whistler, Inc. Profit Sharing Plan covered as many as 34 participants and had $171,491 in assets as of April 30, 1994. The plan was terminated that year.

According to the lawsuit, defendant Sam Holloman enabled Denver Bilyeu to divert the money for Bilyeu’s benefit. The plan allegedly suffered financial losses as a result of the improper diversion of plan assets.

The lawsuit seeks a court order to require that Holloman reimburse the plan for any losses and profits with interest, to permanently remove him from his position with the plan and to appoint an independent successor trustee to manage the plan.

“Our goal is to assure that consumers know that the department is only a phone call away to help protect the benefits promised by employers," said Bruce D. Ruud, director of the Dallas Regional Office of the Labor Department’s Pension and Welfare Benefits Administration (PWBA). “Employers and workers can reach us at 214/767- 6831 for help with any problems relating to private-sector pension and health plans.”

The case resulted from an investigation conducted by the Dallas Regional Office of PWBA into alleged violations of the Employee Retirement Income Security Act. The lawsuit was filed on March 20 in federal district court for the Midland-Odessa Division.

(Herman v. Holloman)
Civil Action No. MO-00CV-029

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Archived News Release — Caution: Information may be out of date.