The Department of Labor has settled a lawsuit with the trustees of a defunct New York City garment company over $4.2 million in alleged unlawful plan transactions.
Colette Mordo, trustee and fiduciary to the pension plans of Sadimara Knitwear Inc. and Stallion Knits Ltd., agreed to restore those funds and any shortfall in assets owed to the plans’ participants and beneficiaries.
The lawsuit alleged that Mordo violated her fiduciary duties under ERISA because she authorized the pension plans to make improper loans and transfers of plan assets over several years to multiple recipients, including members of her family and two companies in which she has an ownership interest, International Design Concepts LLC and Apparel Group International LLC.
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