Federal Judge Approves Plan Distribution, Termination

July 15, 2008 (PLANSPONSOR.com) - A federal judge in Ohio has issued an order allowing the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) to distribute more than $600,000 in 401(k) assets to ex-employees of a Dublin company.

An EBSA news release said the money will be given out to former workers for American Systems Consulting, Inc.

An EBSA lawsuit against the company and its owners, Cliff and Loree Gallatin, charged that American Systems improperly diverted plan funds to bolster the company’s general accounts. The Gallatins have already paid $100,860, the government announcement said.

The court order designates Larry Lefoldt as independent fiduciary to oversee distributing the rest of the plan assets and then its termination.   

The suit resulted from an investigation conducted by EBSA’s Cincinnati regional office.