Hollywood, Florida Pension Trustee Ordered to Restore Almost $108,000 to Pension Plan

Archived News Release — Caution: Information may be out of date.

Atlanta, Georgia - The Gary M. Hochberg CLU Insurance Agency of Hollywood, Florida, and the trustee of its pension plan, have been ordered to restore almost $108,000 to the plan as restitution for improper transfers of plan assets. The order resulted from a lawsuit filed by the U.S. Department of Labor.

"Retirement benefits are crucial to America's workers," said Ann L. Combs, assistant secretary of labor for employee benefits security. "The department took this legal action to ensure that workers are paid the benefits they are promised."

The court order, entered in federal district court in Ft. Lauderdale, Florida, requires the agency and Gary M. Hochberg to restore $107,938 to the plan. Hochberg also is permanently barred from serving as a fiduciary to any employee benefit plan governed by the Employee Retirement Income Security Act (ERISA), and an independent trustee will be appointed to manage the plan.

Hochberg was the pension plan's trustee as well as the sole owner, director and officer of the insurance agency. The department's suit, filed October 8, 2003, alleged Hochberg transferred $55,120 in plan assets in 1994 and 1996 to himself and Designer Wear Inc., a company in which he had an interest. These transfers were prohibited by ERISA.

The department also alleged that Hochberg failed to maintain and account for plan funds and monitor the fair market value of plan assets; excluded eligible employees from coverage by the plan, and failed to pay or underpaid benefits to some participants. In 1999, the defendant reportedly paid some retirees lower rates of benefits than provided in the plan's benefit formula. Hochberg also allegedly failed to account for plan contributions, plan investment earnings and losses and plan expenses as early as 1992.

The case resulted from an investigation conducted by the Employee Benefits Security Administration's (EBSA) Atlanta regional office. Employers and workers can contact the regional office at 404.562.2156 or EBSA's toll free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector pension and health plans.

(Chao v. Hochberg)
Civil Action No. 03-61859

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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