Pennsylvania Builders Association Benefits Trust, Lemoyne, agreed to pay $5.5 million to settle a U.S. Department of Labor lawsuit that accused trustees of making improper payments with plan assets.
The suit, filed earlier this month in U.S. District Court in Harrisburg, Pa., was settled Monday; trustees neither admitted nor denied wrongdoing.
The suit followed an investigation by the Employee Benefits Security Administration. Specifically, trustees misused plan assets to pay royalties to the association and administrative fees to a subsidiary from 2000 to 2007, and to pay for political lobbying from 2002 to 2004, the Labor Department alleged.
The association will return $5 million to the trust and pay a $500,000 civil penalty.
Susan Metcalfe, an attorney for the trustees, said the resolution was very amicable. She pointed out that there were no allegations of any personal gain on the part of the trustees. Were talking about technical violations that the trustees did not knowingly engage in.