Miami Law Firm Must Restore $135,233 to Profit Sharing Plan

Archived News Release — Caution: Information may be out of date.

Miami, Florida - The law firm of Bailey, Hunt, Jones & Busto, P.C., -- now known as Bandsawe Residual Corp. -- must restore $135,233 to its profit sharing plan as restitution for making improper loans, according to a consent order issued December 21, in federal district court here.

The settlement with the U.S. Department of Labor also requires that Neil Useden be appointed as independent fiduciary and trustee to manage this plan and a defined benefit plan sponsored by the law firm. As part of the settlement, the plan trustee has agreed to pay restitution in the amount of $7,687 plus lost earnings.
Named as defendants in the case were Guy B. Bailey, Jr., the plan's trustee, and Bandsawe Residual Corporation, the current name of the law firm, which served as the plan administrator.

In a lawsuit filed in October 2000, the Labor Department accused the firm and the trustee of providing improper plan loans exceeding $162,000 to five of the plan's participants and failing to require full repayment of these and other loans. By settling the case, the defendants neither admit nor deny the allegations.

Thirty-four participants were covered by the profit sharing plan, which had been converted from a money purchase pension plan in 1994 and had assets of $723,399 as of December 31, 1998.

"This case exemplifies our commitment to protect workers' hard-earned benefits,” said PWBA's Atlanta Regional Director Howard Marsh. "Workers can help us protect their benefits by contacting our office at 404.562.2156 if they have questions or suspect abuse of their pension, health or other benefit plans."

The settlement resulted from an investigation by the Miami District Office of the Pension and Welfare Benefits Administration into alleged violations of the Employee Retirement Income Security Act (ERISA).

(Chao v. Bailey
Civil Action No. 3914)

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Archived News Release — Caution: Information may be out of date.