Dan Geiger was ordered by a U.S. District Court judge in Chattanooga, Tenn., to restore $4.8 million, including interest, to the pension plans of now-defunct Standard Coosa Thatcher Yarns Inc., according to a Labor Department news release issued today. The March 20 decision by Judge Curtis L. Collier also permanently barred Mr. Geiger from providing services or serving as a fiduciary to any ERISA plan, according to the news release.
The Labor Department filed a civil lawsuit against Mr. Geiger in 2004, claiming SCT Yarns invested pension money in several businesses co-owned by Mr. Geiger and SCT owner Kenneth H. Combs Jr. SCT Yarns, located in Chattanooga, sponsored two pension plans, both of which have been taken over by the PBGC. The asset sizes could not be learned by press time.
According to the news release, Mr. Geiger is currently serving a nine-year sentence in federal prison for criminal activity related to the plans. M. Engin Derkunt, Mr. Geiger’s lawyer, said Mr. Geiger will “probably appeal the criminal case but not the civil case.”
Mr. Combs pleaded guilty to several criminal charges related to the pension funds in 2004. He fatally shot himself before sentencing.