DOL Sues Retirement Plan Trustees Over $16M Stock Buy

Law360, New York (July 25, 2012, 5:33 PM EDT) -- Onetime trustees of a Cliffwood Beach, N.J., construction company's employee stock ownership plan breached their fiduciary duties in letting the plan purchase company stock for an inflated, $16 million price, the U.S. Department of Labor contends in a suit announced Tuesday.

In 2007, First Bankers Trust Services Inc. violated the Employee Retirement Income Security Act in approving the plan's purchase of 380,000 shares of construction company SJP Group Inc.'s outstanding stock from majority shareholder Vincent DiPano, according to the complaint in New Jersey federal court....
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