After a 19-day trial, a U.S. District Court Judge in the Southern District of Mississippi has ordered the fiduciaries of Bruister and Associates Inc. to pay nearly $6.5 million to two of the company’s employee stock ownership plans.
Based in Mississippi, BAI is a privately held subcontractor for DirecTV subscribers. Between December 2002 and December of 2005, Herbert Bruister, the sole owner of the company, sold all of his stock – $24 million worth — to his employees through two ESOP plans.
The Department of Labor alleged that Bruister and two other plan fiduciaries engaged in prohibited transactions, causing the employees purchasing the stock to pay an inflated price for shares based on flawed valuations.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
