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Compliance April 30, 2008
DC Lawyer Barred from ERISA Plan Service
A federal judge has permanently barred a District of Columbia lawyer from servicing any Employee Retirement Income Security Act (ERISA) plans after the attorney was charged with helping improperly transfer retirement plan assets.
Reported by Fred Schneyer
A Department of Labor (DoL) statement said David Johnston is now prohibited from providing advice or other services to an ERISA program.
A DoL suit charges that Johnston knowingly helped move retirement plan assets to companies affiliated with the president of SCT Yarns, Kenneth H. Combs Jr., and received fees as a result of the improper asset movement.
The Pension Benefit Guaranty Corporation took over the two retirement plans from the bankrupt Chattanooga-based SCT in 2001. The plans cover 771 participants, according to the DoL.