Compliance September 3, 2003

NYC Union Allegedly Misused Pension Funds

March 21, 2002 (PLANSPONSOR.com) - Federal labor officials have filed suit against the president of a New York City-based union for allegedly improperly cashing union health plan checks and putting more than 90% of the plan's assets into one investment - a building.
Reported by

The suit, filed in US District Court in Manhattan, names as defendant William Perry, administrator and trustee of the health and pension plans for District 6 of the International Union of Industrial Service, Transport & Health Employees. Perry is also union president. Also named as defendants are trustees Jerome Vuoso, Ludovic Marcovici and Francis Winn – and the union.

The US Labor Department DoL suit asks that a judge bar the defendants from serving any other ERISA-governed plan and to force the defendants to restore any plan losses plus interest.

Allegations levied against Perry in the suit include that he:

  • issued, endorsed, and cashed 1,100 health plan checks payable to others from 1993 to 1999,
  • didn’t collect rent for the health plan from a building the plan largely owned,
  • used both pension and health plan assets to reimburse the union for expenses other than those incurred in plan administration, and
  • failed to diversify the health plan’s investments by putting more than 90% of its assets into a building at 18 East 31st Street in Manhattan.

The DoL named the trustees in the suit for not monitoring and correcting Perry’s actions.

«