The Department of Labor filed a lawsuit alleging that Macristy Industries Inc., New Britain, Conn., misused more than $1.8 million in assets from the company's cash balance plan. The suit, filed Jan. 18 in U.S. District Court in Hartford, Conn., alleges Macristy and Jeffrey B. Barlow, the company's president, violated ERISA by using the money to pay for company operations. The suit seeks disgorgement of profits and restoration of the plan's losses with interest. The suit also seeks to bar Mr. Barlow from serving as a fiduciary to any ERISA plan.
John M. Chavez, a DOL spokesman, wasn't able to provide the plan's assets but said it had at least $2.6 million in the fall of 2002, when the lawsuit alleges assets were improperly transferred to a company account.
Mr. Barlow did not return phone calls by press time.
