Building Co. Hit With Record ERISA Fine Over Hidden Pension
Law360, New York (May 18, 2015, 9:08 PM EDT) -- A Bronx-based construction company agreed in New York federal court on Monday to pay $11 million, including record-setting Employee Retirement Income Security Act penalties, to settle a class action alleging the company hid the existence of a pension plan from hundreds of employees for more than a decade while its principals reaped benefits.
The plaintiffs allege that excavation and foundation company Mayrich Construction Corp. owners John Giacopelli, Richard Giacopelli and Joseph Scott created a stock ownership plan under the name Sentry Services Ltd. in 2003, but never told their employees about it.
Instead, the three used the plan's assets to pay...
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