Kansas City Physicians Agree To Restore More Than $280,000 To Pension Plan

Archived News Release — Caution: Information may be out of date.

Two Kansas City, Mo. orthopedic surgeons have agreed to restore $287,088.97 to the Orthopedic Associates of Kansas City, Inc. Money Purchase Pension Plan as restitution for losses resulting from the investment of nearly all of the plan’s assets in a single speculative and volatile gold share fund, according to a consent judgment obtained by the U. S. Department of Labor.

Drs. John W. Collins, Jr. and Harold D. West, Jr. also were replaced as Trustees of the plan by The Midwest Trust Company, Overland Park, Kansas.

Orthopedic Associates operates a medical group of orthopedic surgeons with three offices located in the Kansas City metropolitan area. The medical practice sponsored the plan for as many as 25 employees. The restitution amount noted above will be credited solely to the plan accounts of non fiduciary participants.

A lawsuit, filed on August 31, 2000, alleged that trustees Collins and West failed to diversify plan investments by improperly investing approximately 95% of plan assets and all dividends in a single speculative and volatile gold share fund.

This case resulted from a civil investigation conducted by the Kansas City Regional Office of the Pension and Welfare Benefits Administration (PWBA) into alleged violations of the Employee Retirement Income Security Act. The judgment was entered on September 14, 2000 in federal district court in Kansas City, Missouri.

PWBA Regional Director Gregory Egan said, “This case reaffirms our commitment to protect the hard earned benefits of workers. Workers also can help us protect their plan benefits by contacting our office at 816-426-5131 if they have questions or suspect abuse of their pension, health or other benefit plans.”

(Herman v. Collins)
Civil Action No. 4-00-00895-GAF

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Archived News Release — Caution: Information may be out of date.