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Furthermore, the loan proceeds flowed back to Morrissey.
Moreover, neither interest nor principal payments were ever made
to the Defined Benefit Plan. Indeed, when the Defined Benefit
Plan was terminated, nothing of any value was transferred to the
Defined Benefit Plan. Rather, Morrissey signed a form titled
"Employee's Waiver of Portion of Benefit Not Funded Upon
Distribution of Plan's Assets Pursuant to Plan Termination
Effective: September 26, 1990", in which he waived his right to
any unfunded benefits, to the extent that the Defined Benefit
Plan assets were insufficient to provide the actuarial equivalent
of his normal retirement benefit on the date of benefit
distributions. By allowing himself to obtain loans from the
Defined Benefit Plan and then waiving his right to unfunded
benefits at termination, Morrissey used the Defined Benefit Plan
assets as a ready source of cash for his immediate personal needs
as opposed to income for retirement.
In our opinion, the failure to make required contributions
owed to the Defined Benefit Plan, the lending of a large portion
of the Defined Benefit Plan's liquid assets through loans to the
trustee secured only by his vested Accrued Benefit, the failure
to pay any interest or repay the principal by the date of
termination of the Defined Benefit Plan, and the waiver by the
trustee of his right to any unfunded benefits combine to prove
that the Defined Benefit Plan was not managed for the exclusive
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