Robert O. Young, a third-party pension plan administrator, and his company, Financial Administrative Services, Salt Lake City, have agreed to repay $101,877 plus interest to 15 clients' employee benefit plans under a judgment obtained in U.S. District Court for Utah by the U.S. Department of Labor.
Department officials said FAS is permanently barred from doing business, either as a fiduciary or as party in interest, with any plan governed by the Employee Retirement Income Security Act.Young also is barred from acting as an ERISA fiduciary and barred for 10 years from serving in a party-in-interest capacity. FAS was third-party administrator for as many as 212 plans in four states.
Between 1986 and 1990, Labor Department officials said, Young and his company violated ERISA when they:
- Failed to keep accurate records of contributions, investments and benefit payments resulting in the loss of accountability over plan assets.
- Failed to deposit plan contributions in the proper trust account.
- Failed to invest plan funds in a timely manner.
- Failed to provide administrative services paid for by the plans.
- Deposited some plan contributions into the company's corporate account.
- Improperly transferred welfare plan assets to pension plans to satisfy debts and expenses.