Stockbroker Law - Tuesday, August 12, 2014
ERISA Plan Trustees Subject to Offsets for Prohibited Transactions as Functional Fiduciaries

ERISA-Qualified Pension Plans

The past decade has seen an explosion of new investment products being purchased in ERISA-qualified pension plans. These products, including structured products, auction rate notes, private placements, managed money arrangements, and registered investment with advisory relationships have seen ERISA plan trustees tempted by sellers of these products offering commission and/or referral sharing arrangements for such products purchased by plans.

The involvement of ERISA plan trustees with any such undisclosed arrangements, fraught with conflicts of interest as they are, may very well constitute prohibited transactions under 29 U.S.C. Sections 1104, 1105, 1106, and 1008. Such conduct on the part of a functional fiduciary ERISA plans and their beneficiaries to an offset against any benefits plan fiduciaries might otherwise have been entitled to as a result of fiduciary involvement with prohibited transactions.

We offer a free initial consultation to ERISA plan beneficiaries who believe their interests in retirement plans have been improperly abused by plan fiduciaries involved with prohibited transactions.

The Law Offices of Timothy J. O’Connor practices securities law in the Tri-City Capital District of Albany, Schenectady and Troy. We also represent victimized investors throughout the rest of New York State, including Buffalo, Binghamton, Rochester, Syracuse, Watertown, Utica, Kingston, Poughkeepsie, New York City/Manhattan, Long Island, and everywhere in between, as well as in the surrounding states of Massachusetts, Vermont, New Hampshire, Connecticut, and New Jersey.


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