WASHINGTON — The U.S. Department of Labor obtained settlements calling for a total of $4.3 million in restitution to pension and health plans in Ohio, Arizona, Colorado and Minnesota, said Gloria Della, spokeswoman.
The settlements resolve eight lawsuits alleging that plan trustees violated the Employee Retirement Income Security Act by authorizing investments in a series of risky private placements managed by Capital Consultants LLC, Portland, Ore., over a period of several years. The suits also claim the trustees did not adequately monitor the investments, Ms. Della said.
The settlements cover the Electrical Workers Local 292 Annuity and Pension Plans, Sheet Metal Workers Local 33 Pension Fund, IBEW Local 212 Pension Trust Fund, Tri-County Building Trades Health Fund, Sheet Metal Workers Local 9 Health and Welfare Fund, Arizona Sheet Metal Trade Trust Fund, IBEW Local 38 Pension and Health and Welfare Funds, and Operating Engineers Health and Welfare Trust Fund.
Loraine L. Pedowitz, an attorney with Allen Matkins Leck Gamble & Mallory representing Capital Consultants' court-appointed receiver, Thomas Lennon, could not comment on the matter by press time.