Barstow Truck Parts president to pay back $118k in retirement funds
Judgment settles allegations of unpaid loans
PASADENA • The U.S. Labor Department obtained a judgment Wednesday ordering Barstow Truck Parts and Equipment Co. and its president, James Rajacich, to restore $118,249 in losses to the company’s retirement plan.
The agreement resolves allegations by the Labor Department that Rajacich failed to repay $70,000 in loans taken out of the plan in 1997. The Labor Department began their investigation into the case in 2005.
“When someone takes on a fiduciary responsibility on a retirement plan, they are required to act in the best interest of employees, their spouses, and beneficiaries,” said Department of Labor spokeswoman Deanne Amaden.
Rajacich will be required to forfeit his own benefits as part of the settlement, according to a Labor Department release. The total amount to be restored includes unpaid loan amounts, interest, and loss of earnings the $70,000 would have brought in if invested properly. The Labor Department is also assessing a civil penalty of $23,650.
Wednesday’s judgment is not related to the criminal case resolved in 2008 that found former Barstow Truck Parts treasurer and secretary Joyce Jaska guilty of embezzling $150,000 from the company, said Chrisanta Johnson, regional administrator for the Employee Benefits Security Administration.
Rajacich did not return phone messages left at Barstow Truck Parts or his home Friday.
Johnson said that all working Californians who have retirement plans should examine required yearly statements about their plans, and report any suspected irregularity to the Department of Labor at 1-866-444-3272.
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