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Release Date: 01/16/2004
Release Number: 04-50-NAT
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Atlanta, Georgia - The former president of
Standard Coosa Thatcher (SCT) Yarns, Inc. pled guilty in federal district
court in Tennessee to 31 counts of mail fraud, embezzlement, graft,
conspiracy to launder money and money laundering that resulted in over $11
million in losses to the company’s pension plan. |
“Theft
of employee benefit assets jeopardizes the benefits of workers,” said
Ann L. Combs, Assistant Secretary of Labor of the Employee Benefits
Security Administration. “This case reaffirms our commitment to
protecting workers’ benefits by identifying criminal activity wherever
and whenever it occurs.” |
The
former president of SCT, Kenneth H. Combs, Jr. (no relation to Ann L.
Combs), was indicted in November 2002 on the criminal counts involving
multiple schemes to recklessly invest the assets of the pension plan.
Combs received more than $155,400 in kickbacks from the reckless
investments. He also converted pension assets for his personal use. The
pension plan lost $11,670,491 as a result of the improper investments. |
Sentencing
for Combs is scheduled for April 9, 2004. Trial for one of the other
co-defendants, Daniel S. Geiger of California, is scheduled to begin
January 27, 2004. Geiger is charged with 15 counts of wire fraud, bribery,
money laundering, conspiracy to conceal and disguise the proceeds of a
wire fraud scheme, conspiracy to launder money and money laundering.
Co-defendant Roderick B. Askew, a foreign citizen, is a fugitive believed
to be abroad. |
SCT, located in Chattanooga, Tennessee, manufactured
yarn for the textile industry. The company sponsored two retirement plans
covering 771 participants and had $65,801 in assets, according to the
latest data available to the Labor Department. The Pension Benefit
Guaranty Corporation has taken over the retirement plans for hourly and
salaried employees and will pay benefits to retirees. |
The
Atlanta regional office of the U.S. Department of Labor’s Employee
Benefits Security Administration (EBSA) and the Federal Bureau of
Investigations investigated the case. The U.S. Attorney’s Office for the
Eastern District of Tennessee prosecuted the case. |
(U.S.
v. Combs)
Criminal No. 1:02-CR-187 |
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
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