U.S. Sues Supplier over Missing Pension Assets

The U.S. Dept. of Labor has filed a lawsuit in federal in Kentucky against auto suppliers Metavation LLC and its chairman George Hofmeister to restore $35 million of allegedly misused assets to two company pension plans.

The Labor Dept. suit also includes Bernard Tew, managing director of two firms Bluegrass Investment Management LLC and Tew Enterprises LLC that acted as investment advisors to the Metavation pension funds.

The lawsuit alleges that Hofmeister and Tew used pension assets to buy property, pay excessive advisory fees and make improper loans.

Southfield, Mich.-based Metavation, which makes powertrain and chassis components, denies the charges.