UA's Maddaloni and Patchell among trustees ordered to pay nearly $11 million; DOL found fund mismanagement at Diplomat Resort
The Department of Labor removed four board trustees from the Plumbers and Pipefitters National Pension Fund and ordered them to pay $10.98 million in restitution and civil penalties stemming from the improper management of the fund's investment in the Westin Diplomat Resort and Spa in Hollywood, Fla.
The settlement of the nearly 2-year-old lawsuit, which must still be approved by the federal district court in Ft. Lauderdale, Fla., calls for the resignation from the fund's board of Martin J. Maddaloni, president of the United Association of Journeymen and Apprentices of the Plumbing, Pipefitting, Sprinkler Fitting Industry of the United States and Canada; Thomas Patchell, general secretary-treasurer of the plumbers' union; Charles H. Carlson, former chairman of Industrial Piping Co.; and James A. House, part owner of bankrupt refrigerant company J.A. House Inc.