Federal officials charged a Michigan-based vehicle parts manufacturer for misusing $34 million in assets from two retirement funds, according to The Detroit News.
The U.S. Labor Department filed suit against Metavation LLC, which is owned by Revstone LLC, for violating the Employee Retirement Income Security Act. Metavation’s parent company improperly loaned the $34 million to its other related companies.
“Retirees who rely on pension plans should not have to worry about whether these funds are secure,” Labor Secretary Hilda Solis told Detroit News in a statement. “That is why those who are entrusted with managing pension funds are held to the highest legal standards and will be held accountable by the Labor Department if they violate that trust.”
The two plans cover about 1,500 people with approximately $36 million in assets.
Labor Department officials named George Hofmeister, chairman and director of Metavation, in the lawsuit, according to The Detroit News.
Bernard Tew, managing director of Tew Enterprises LLC and Bluegrass Investment Management LLC, were also listed as the investment advisers of the pension plans.