Compliance July 9, 2010

Ex-Employee of Defunct Bank Files Stock Drop Case

A former participant in the 401(k) and employee stock ownership plan (ESOP) of a now-defunct Lincoln, Nebraska-based bank has filed a stock drop lawsuit against the plans' fiduciaries. 
Reported by

An Associated Press news report said plaintiff Susan Bredthauer filed the suit against the former directors and employee benefit committee of TierOne Bank and its former trustee Principal Trust Co.  A Lincoln Journal Star story about the suit said Bredthauer is a former senior mortgage officer.  

The complaint alleges that the plan fiduciaries should have known TierOne stock was an imprudent investment before federal regulators took over TierOne and sold its assets last month. “The company and several of the defendants hid the true extent of TierOne’s financial distress and that financial collapse was more than merely possible, but imminent,” the lawsuit charged, according to the Associated Press account. 

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The news report said the TierOne stock held in the 401(k) and ESOP was worth $46.8 million at the end of 2007 when the stock traded for $22.15. By the end of last month, TierOne’s stock sold for 6.5 cents per share, so the retirement plans’ holdings were worth $149,954. The bank’s plans held more than two million shares of TierOne stock. 

The Federal Deposit Insurance Corp. took over TierOne in early June, and Great Western Bank, of Sioux Falls, South Dakota, agreed to acquire the bank. All of TierOne’s branches are now Great Western branches. 

Deals & People July 8, 2010

Senderowitz Joins 401(k) Advisors, Opens Orlando Office

Independent retirement consulting firm 401(k) Advisors has announced the opening of an office in Orlando, Florida, under the leadership of Phillip Senderowitz.
Reported by

Senderowitz was formerly Chief Investment Officer at Chepenik Financial, and before that a private financial advisor at SunTrust Bank, and team manager at Charles Schwab. He reports to Paul Powell, Managing Director, 401(k) Advisors for the southeastern region. 

In his new capacity as senior plan consultant for the Florida office, he will drive growth opportunities in the region with new and existing clients. According to the announcement, Senderowitz is a specialist in investment management, financial planning, executive compensation and corporate retirement planning with over a decade of experience in the industry. 

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 “Building a great company takes leading talent. We’re quite pleased Phil has decided to join 401(k) Advisors where he can now express the full strength of his talent,” says Paul Powell, Managing Director, 401(k) Advisors. 

401(k) Advisors specializes in retirement plan consulting for major and mid-sized private and institutional plan sponsors, and currently oversees $10 billion in assets under advisement. Offices are located in the Midwest, Northeast, Southeast, Southcentral and Western regions of the United States.  

More information is available at http://www.401kadvisors.com.          

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