The U.S. Department of Labor has filed a civil suit in U.S. District Court for Utah against Triangle Oil Co. of Bountiful and four trustees of the Triangle Oil Co. Inc. Profit Sharing Plan for allegedly violating their fiduciary obligations under the Employee Retirement Income Security Act.
Trustees named in the lawsuit were Lyle Nelson, Dean Kent, Geraldine B. Allred and estate of Sheldon E. Christensen. Also named as defendants were Douglass Allred, Triangle Oil president; and West Winds Truck Stop, a joint venture owned by Triangle.The complaint alleges that the trustees violated the act when they made repeated imprudent loans, failed to collect money due the profit sharing plan, loaned $200,000 to the truck stop, a party to the plan; and caused the plan to extend credit to Allred Investment Co., also a party to the plan.
The government claims that Douglass Allred participated in the fiduciary breaches of the trustees and the company is alleged to have acted imprudently by not monitoring the trustees' actions and failing to prevent or correct the violations.
In its suit, the department is asking the court to appoint an independent fiduciary to manage the plan, enjoin Geraldine Allred, Nelson and Kent from acting as fiduciaries to any employee benefit plan for 10 years and order the trustees to restore to the plan all losses incurred as a result of the alleged violations.
The department also wants the court to order the company to restore to the plan any profits of the fiduciaries which have been made as a result of the alleged violations, order Douglas Allred to reimburse the plan for all losses incurred as a result of participation in the fiduciary breaches of the trustees and enjoin all defendants from taking any action concerning the plan.