Some crooks out there read how they became toast.http://www.nlpc.org/olap/UCU3/05_06_19.htm Union Fund Trustees Settle Members' Suits for $16 Million Members of three unions settled lawsuits against their pension fund trustees Mar. 7 in a case involving allegations of pension fraud by Capital Consultants LLC, a Portland, Or., fund management firm. Members of two more unions plan to settle suits against their trustees by mid-Mar. The total recovery of all five actions is $16 million. Capital Consultants had $927 million under its management when federal agents seized its assets in Sept. 2000. Funds from Taft-Hartley plans and other union plans accounted for $407 million of the high-risk private investments, many of which may now be nearly worthless. The Dep't of Labor estimates that the union funds lost more than $100 million due to risky investments.
Since the firm went into receivership, many suits have been filed seeking to recoup the losses. The civil lawsuits fall into three basic categories: those filed by federal regulators against Capital Consultants, those filed by the union pension funds against Capital Consultants and their legal and financial advisers, and those filled by union members against their own pension fund trustees. Criminal charges also have been filed against Capital Consultants's managers and an ex-boss of the Laborers' Int'l Union of N. Am.
The suits against the fund trustees allege breach of fiduciary duty, said Dan Feinberg, an Oakland, Cal., attorney representing members of three unions. The three unions are the Oregon Laborers Union, Idaho Laborers Union, and Office & Prof'l Employees Int'l Union Local 11 based in Portland. All the settlements are funded by the funds' fiduciary liability policies and not by individual trustees. None of the settlements admits any liability on the part of the trustees.
The settlements with the two Laborers' unions were filed Mar. 7 with the U.S. Dist. Court for the Dist. of Oregon. A similar settlement for members of Local 11 will be filed by mid-Mar., Feinberg said. Feinberg said that the settlements call for a payment of $ 4 million to the trust funds administered by the Oregon Laborers Union, which lost an estimated $40 million in investments. The Idaho Laborers Union, which had a loss of $10 million, will receive $1.9 million, and Local 11, which had a loss of $10 million, will receive just under $1 million.
Another settlement was reached Mar.7 in the same federal court with members of plans administered by Portland-based Local 290 of the United Ass'n of Plumbers & Pipe Fitters. It calls for a payment of $3.7 million. The fund has $29 million at risk due to the investment losses at Capital Consultants, said Chrys Martin, a Portland attorney representing Local 290's members.
Finally , by mid-March, members of the Eighth Dist. of the Int'l Bhd. of Elec. Workers are scheduled to settle a suit against trustees of their trust funds, said Seattle attorney Richard Birmingham who is representing the members. The Eighth District includes Idaho, Utah, and Colorado. That settlement is expected to be for about $6 million. The trust has $50 million at risk due to investment losses at Capital Consultants.
Union trusts that have lost money through their investments with Capital Consultants are expected to recoup more of their losses in the months ahead in addition to the payments from the suits against the fund trustees. Negotiations initiated by the trusts appear to have resulted in a tentative settlement with some of the defendants, but the details of the settlement have yet to be approved by the court or made public. Also, the receiver has been liquidating some of the assets held by Capital Consultants, and proceeds from such sales will be going to trusts and other investors. [BNA 3/11/02]
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I just had a talk with my Legal Expert over 20 in Banko Courts and second man in Jail4Judges,to Ron Branson. I know him for 4 years.He is no kids play,and knows the Law better than most Lawyers. http://www.jail4judges.org/national_002.htm Logs Below that took place yesterday and today. Yesterday log first. LE:we can submit a plan Taki. Taki: tell me LE:[5:44 PM]: we have to submit a plan that provides money for the creditors and shareholders. LE:court sytem protects all "the brothers" shareholders need to organize, and submit a professional plan or they will get f. mario needs to get on board or loose all. I know how the courts work. do you know how many judges have been impeached in 100 years 14.We need jail 4 judges and fast.Before this things go wild. LE:I am telling you, i know the system better than most lawyers,if we want to get even, we need to orginize and have a plan. Below log took place today. Takis:Why in you opinion CG send out the letter to shareholders? LE:trial ballon,test the waters,see who will be a problem in liquidation,then let shareholders hang themselves. you are providing him a roadmap to make up his liquidation plan. LE:when at war,surprise is the main element, no one listens, and that is why very few win, the bad guys know how it works, the good guys are clueless, think system will protect them, same system that is f them. Takis:so on purpose he send out e-mails to shareholders pocker game to see reaction? LE:yup yes.now you are getting it.also finding out who is the problem,then indentify that person raising hell and puting mis information into internet, then prepare paperwork to dis credit them to judge. Takis: Unreal,if that is what he did LE: yes big game and big money. welcome to the real world. Takis:So in 20 years you have worked in Banko courts.What you make of it?? LE:shareholders mean shit in a means test,the only concern to the court right now is they do not care they do not have to care the shareholders mean nothing at this point in the test i know this makes no sense taki you have to trust me on this i could read for 30 minutes and tell youexactly what is going on Taki:You are in these business 20 years, you are the Expert LE:my expert opinion tells me someone pissed off trustee. and the judge is tired of this case, new rules take efect monday,and there is many new test to payment of debt. might even be in marios best interest to dissmiss and refile in new venue like florida,just an idea. LE:this is why marion and i should talk.the fact he does not want to talk , tells me something is f up. why would you not take free advice from someone that has done this for 20 years? you tell me.I am all f ears. Takis: I know He needs to call you. LE:no shit, i will even call him on my nickle. no obligation Takis:You know the law more than most Lawyers LE:I talked with the head guy at jail4Judges,today an hour ago,Ron Branson. Takis:End? LE:we are doing great in SD,and we might have a big donation coming. Takis: Get the Job done. LE:no shit.stop the madness. taki have mario call me,or email me.lets save this f thing. Takis:okay.If pass the Jail for Judges in SD,what state is next? LE: next nevada i think.just have mario email me simple deal.we talk 20 minutes maybe i can help.Tell him to call me, or email me. Takis:what is your position in Jail4Judges? LE:I am second man in system. Takis:WOW.
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