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A Dept.of Labor Consent judgement against Georgetown Realty Inc.the company's owner, John Mahaffy,resulted in restitution of $420,127 to the Georgetown Realty Inc. Profit Sharing Plan and Trust for losses due to unwise real estate investments overseen by Mahaffy. In addition, Mahaffy is barred from serving any employee benefit plan covered under the Employee Retirement Income Security Act.
Mahaffy used 80% of the plan's assets to invest in purchasing property for a resort. The resort failed and the lenders foreclosed. The plan participants lost most of their retirement accounts
The DOL filed a lawsuit, Perez v. Georgetown Realty Inc. (civil action number 3:12-cv-01164), in the U.S. District Court for the District of Oregon.
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