PLUMBERS & PIPE FITTERS (UA)
DOL Action Reportedly Nearing in $800 Million Florida Hotel Case
The Dep't of Labor is reportedly nearing the end of its investigation
into the United Ass'n of Plumbers & Pipe Fitters' investment in the
Westin Diplomat Resort & Spa near Miami. Martin
J. Maddaloni, president of the union whose pension fund owns the $800
million Diplomat, recently mailed a letter to UA locals to alert them that
DOL may "take action" against the trustees of the pension fund. Reportedly,
DOL asked for five of the fund's six fiduciaries to resign, including Maddaloni.
UA bought the Diplomat in 1997 and sold it to its pension fund. The transaction drew the attention of DOL, which required that the pension fund hire an independent overseer to monitor costs. Still, costs continued to mount. The Wall St. Journal estimated that UA's investment in the Diplomat amounts to 20% of the fund's assets. "I don't think it's quite that high," Maddaloni said. He acknowledged, however, that DOL is "concerned" about the cost overruns of the nearly four-year construction project. [Miami Herald 4/4/02]
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