U.S. Department of Labor sues former Fort Lauderdale, Florida, entertainment company on behalf of profit-sharing plan participants

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has sued Mark Possein and National Marketing and Entertainment Group Inc. (NMEG) in Fort Lauderdale, Florida, for misusing $68,424 of plan assets to benefit the company and other entities between January 2003 and May 2005 in violation of the Employee Retirement Income Security Act (ERISA).

The lawsuit, filed in United States District Court for the Southern District of Florida, alleges that Mark Possein and NMEG transferred approximately $68,424 from the plan’s account between January 2003 and May 2005 for the benefit of NMEG and other entities. From March 2003 to November 2004, the defendants deposited approximately $24,429 in the plan and characterized these deposits as loan repayments. The company produced adult videos and printed materials.

The Labor Department alleges that these withdrawals violated ERISA by using the assets for the benefit of the employer, NMEG. The defendants allegedly breached their fiduciary responsibilities by failing to act solely in the interest of the plan participants and beneficiaries.

The suit asks the court to remove Mark Possein and NMEG as fiduciaries of the plan, appoint an independent fiduciary, and require the defendants to restore plan losses.

“These fiduciaries used plan assets for a series of prohibited transactions between the plan and NMEG, and the Labor Department is taking this action to protect the interests of the plan participants,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration (EBSA) office in Atlanta.

This case resulted from an investigation conducted by EBSA’s office in Atlanta. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Mark C. Possein
(Civil Action File Number 0:09-cv-60052-WPD)

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