Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-02202/USCOURTS-cand-3_05-cv-02202-11/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1001 E.R.I.S.A.: Employee Retirement

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Consent Judgment Page- 1

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LAWRENCE BREWSTER, Regional Solicitor 

DANIELLE JABERG, Counsel for ERISA 

JAN M. COPLICK, Senior Trial Attorney 

California State Bar Number 124053 

E-mail: sol-sf@dol.gov 

United States Department of Labor 

Office of the Solicitor 

71 Stevenson Street, Suite 1110 

San Francisco, California 94105 

Telephone: (415) 975-4498 

Facsimile: (415) 975-4495 

Attorneys for Elaine L. Chao, Secretary 

United States Department of Labor, Plaintiff 

UNITED STATES DISTRICT COURT FOR THE 

NORTHERN DISTRICT OF CALIFORNIA 

ELAINE L. CHAO, Secretary of the United 

States Department of Labor, 

 Plaintiff, 

 vs. 

GKO & ASSOCIATES, INC., a California 

corporation; GKO Consulting Engineers, Inc. a

California corporation; JAMES WINZLER, an 

individual; GREGG OKAMITSU, an 

individual; YAN KAM-WING, an individual; 

and GKO & ASSOCIATES 401(k) SAVINGS 

AND PROFIT SHARING PLAN, an 

employee pension benefit plan, 

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 Defendants. 

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Case No.: Docket No.C-05-02202 JSW 

CONSENT JUDGMENT AS TO 

DEFENDANTS GREGG OKAMITSU AND 

YAN KAM-WING ONLY 

Plaintiff ELAINE L. CHAO, Secretary of the United States Department of Labor (the 

“Secretary”), and defendants GREGG OKAMITSU (“Okamitsu”) and YAN KAM-WING 

(“Yan”), collectively the “Parties” hereto, have agreed to resolve the matters in controversy in 

this civil action and request the entry of this Consent Judgment, in accordance herewith: 

A. The Secretary’s complaint against Defendants Okamitsu and Yan, which also named 

as defendants GKO & ASSOCIATES, INC., a California corporation; GKO Consulting 

Engineers, Inc. a California corporation; JAMES WINZLER (“Winzler”), an individual, and the 

Case 3:05-cv-02202-JSW Document 48 Filed 11/29/06 Page 1 of 6
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GKO & ASSOCIATES 401(k) SAVINGS AND PROFIT SHARING PLAN (the “Plan”)1

alleged violations of Title I of the Employee Retirement Income Act of 1974 (“ERISA”), 29 

U.S.C. §§ 1001 et seq. 

B. On May 1, 2006, this Court entered an order of Default Judgment against Defendants 

GKO and Associates, Inc., GKO Consulting Engineers and James Winzler and appointed 

Thomas Dillon, Esq. as discretionary independent fiduciary of the Plan (“the Default 

Judgment”). The terms of the Default Judgment required, among other things, that those 

Defendants restore to the Plan losses totaling $142, 578, plus lost opportunity income, resulting 

from those Defendants’ breaches of their ERISA fiduciary duties. To date those Defendants 

have not restored those losses to the Plan. 

C. Based on the Default Judgment, the Secretary filed a judgment lien against real 

property owned by Defendant Winzler in Honolulu, Hawaii. Defendant Winzler’s said Hawaii 

real property has recently been sold under order of foreclosure issued by the Circuit Court of the 

First Circuit, State of Hawaii in Board of Directors of the Association of Apartment Owners of 

Yacht Harbor Towers vs. James Paul Winzler et al., Civil Case No. 04-1-1366-07. The 

Secretary is represented in that action by Assistant U.S. Attorney for the District of Hawaii, 

Edric M. Ching, who is currently seeking to garnish, to the benefit of the Secretary on behalf of 

the Plan, proceeds from the said foreclosure sale with the goal of thereby satisfying all or part of 

the Default Judgment. 

D. The plaintiff and Defendants Okamitsu and Yan have agreed to resolve all matters in 

controversy in this action between them (except for the imposition by Plaintiff of any penalty 

pursuant to ERISA §502(l), 29 U.S.C. §1132(l), and any proceedings related thereto), and said 

parties do now consent to entry of a Judgment and Order by this Court in accordance therewith, 

and expressly waive Findings of Fact and Conclusions of Law. The parties hereto agree that if 

the Secretary of Labor assesses a penalty against Defendants Okamitsu and Yan pursuant to 

ERISA §502(l) in connection with the violations alleged in this matter, the “applicable recovery 

amount” shall include all amounts paid by Defendants Okamitsu and Yan in accordance with this 

1

 The Plan was named in the Secretary’s complaint solely as a party necessary for complete 

relief pursuant to Fed. R. Civ. P. 19(a). 

Case 3:05-cv-02202-JSW Document 48 Filed 11/29/06 Page 2 of 6
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Consent Judgment and Order. 

E. Defendants Yan and Okamitsu have waived service of process of the complaint and 

have admitted to the jurisdiction of this Court over them and the subject matter of this action, and 

that venue lies in the Northern District of California pursuant to ERISA section 502(e)(2), 29 

U.S.C. § 1132(e)(2). The parties hereto have agreed that this Consent Judgment shall fully settle 

all claims of the Secretary asserted in the Complaint against Defendants Okamitsu and Yan. 

Moreover, upon consideration of the record herein, and as agreed to by the parties hereto, 

the Court finds that it has jurisdiction to enter this Consent Judgment and Order and is 

empowered to provide the following equitable relief, 

IT IS THEREFORE ORDERED that: 

1. Defendants Yan and Okamitsu are permanently enjoined from violating the 

provisions of Title I of ERISA, 29 U.S.C. §1001 et seq. 

2. Following the completion of the Secretary’s involvement in the State of Hawaii 

foreclosure proceedings described in paragraph C above, entitled Board of Directors of the 

Association of Apartment Owners of Yacht Harbor Towers vs. James Paul Winzler et al., Civil 

Case No. 04-1-1366-07, the Secretary will give Defendants Yan and Okamitsu, through their 

attorney Douglas Murken, written notice of the amount of the deficiency, if any, in the total 

amount of the Plan’s losses2

 still owing to the Plan that were not recovered from the foreclosure 

proceeding. Within fourteen (14) days from the posting of such notice, Defendants Okamitsu and 

Yan shall jointly and severally pay to the Secretary on behalf of the Plan the amount of such 

deficiency up to a total amount of $40,000.00. 

3. In order to permit Defendant Okamitsu to be able to make any payment to the 

Plan as may be required under the provisions of paragraph 2, above, Defendant Okamitsu hereby 

agrees that he will forfeit, at that future time, any amount required by the provisions of Paragraph 

2 to a maximum of $20,000.00 of his accrued and vested Plan benefits otherwise due him, as 

authorized by ERISA §206(d)(4), 29 U.S.C. §1056(d)(4), to be reallocated by the Independent 

Fiduciary to the accounts of Plan’s participants and beneficiaries, other than any participants who 

2

 The amount of the Plan losses is the amount found owing by the Court in its Order of May 1, 2006, plus postjudgment interest, as detailed in Paragraph B above. 

Case 3:05-cv-02202-JSW Document 48 Filed 11/29/06 Page 3 of 6
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are also defendants in this civil action. 

4. Defendant Okamitsu’s spouse also waives any interest which may have accrued to 

or vested in her, or may later accrue to or vest in her in Defendant Okamitsu’s Plan account as 

community property as the spouse or beneficiary of Defendant Okamitsu, as provided in the 

Waiver of Benefits and Spousal Consent, executed by her, attached hereto as Exhibit A. 

5. Any payments or account forfeitures made by Defendants Yan or Okamitsu under 

paragraphs 2 to 4 above shall be allocated proportionately among the accounts of the remaining 

Plan participants, except that no part of these amounts shall be allocated to any Plan accounts of 

Defendants Yan or Okamitsu. 

6. Nothing in this agreement affects the right of the Secretary to assess a penalty under 

Section 502(l) of ERISA, nor the right of Defendants Okamitsu and Yan to petition the Secretary 

to waive or reduce all or a portion thereof, as provided in 29 C.F.R. § 2570.85. 

7. The Defendants shall cooperate fully with Independent Fiduciary Thomas Dillon in 

providing documents or information they may have which are relevant to the Plan’s 

administration and management. 

8. Defendants Yan and Okamitsu are enjoined for a period of two years from serving as 

trustees, fiduciaries, advisors, or administrators to any employee benefit plan, as that term is 

defined at Section 3(3) of ERISA, 29 U.S.C. § 1002(3), and from rendering any other services to 

any employee benefit plan. 

9. The Secretary and Defendants shall each bear their own costs, expenses, and 

attorneys’ fees incurred to date in connection with any stage of this proceeding, including but not 

limited to attorneys’ fees which may be available under the Equal Access to Justice Act, as 

amended. 

10. This Consent Judgment shall operate as a final disposition of all claims asserted by 

the Secretary against Defendants in the Complaint. 

11. Nothing in this Consent Judgment is binding on any governmental agency other than 

the United States Department of Labor. 

12. This Court retains jurisdiction of this action for purposes of enforcing compliance 

with the terms of this Consent Judgment. 

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13. By signing their names to this Consent Judgment, the parties represent that they are 

informed and understand the effect and purpose of this Consent Judgment. 

Dated:11.28.2006 HOWARD M. RADZELY 

 Solicitor of Labor 

 LAWRENCE BREWSTER 

 Regional Solicitor 

 DANIELLE JABERG 

 Counsel for ERISA 

 By: _/s/ Coplick.Jan_____________ ____ 

 JAN M. COPLICK 

 Senior Trial Attorney 

 

 Attorneys for Plaintiff 

Entry of this Consent Judgment is hereby consented to on behalf of the GKO & 

Associates 401(k) Savings And Profit Sharing Plan. 

Dated:_________ By:______________________ 

 THOMAS DILLON, Esq. 

 Independent Fiduciary 

Defendants consent to the entry of this Consent Judgment. 

FOR DEFENDANTS GREGG OKAMITSU and 

YAN KAM-WING: 

Dated: November ____, 2006 ___________________________________ 

DOUGLAS MURKEN, Counsel for defendants 

GREGG OKAMITSU and YAN KAM-WING 

 

Dated: November ____, 2006 ___________________________________ 

 Defendant GREGG OKAMITSU 

Dated: November ____, 2006 ___________________________________ 

 Defendant YAN KAM-WING 

The Court directs the entry of this Consent Judgment as a final order. 

IT IS SO ORDERED 

Dated: ________________________ 

 UNITED STATES DISTRICT JUDGE 

 

The Clerk shall close the file. November 29, 2006

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Exhibit A: CONSENT OF SPOUSE TO WAIVER OF BENEFITS 

 

I, DAYLE OKAMITSU, declare that: 

I, DAYLE OKAMITSU, am married to Gregg Okamitsu, a defendant in Chao v. GKO & 

Associates, et al., filed in the United States District Court for the Northern District of California, 

who is a participant in the GKO & ASSOCIATES 401(k) SAVINGS AND PROFIT SHARING 

PLAN. In consideration of the Department of Labor's agreement to resolve its claims against my 

spouse, and to the extent that my spouse opts to offset assets in his participant account in the 

GKO & ASSOCIATES 401(k) SAVINGS AND PROFIT SHARING PLAN against his liability 

in this civil action, I renounce and agree not to pursue any claims or interest that may have 

accrued or vested to me, or may later accrue or vest to me in Gregg Okamitsu’s participant 

account as community property as the spouse or beneficiary of Gregg Okamitsu, or otherwise. I 

understand that as a result of my consent to this waiver, I may receive reduced benefits or 

distributions from Gregg Okamitsu’s participant account in the GKO & ASSOCIATES 401(k) 

SAVINGS AND PROFIT SHARING PLAN. 

Dated: November 27, 2006 

 

 __________________________ 

 DAYLE OKAMITSU 

Sworn and subscribed before me 

This 27th day of November, 2006 

 

NOTARY PUBLIC 

My Commission Expires: 

EXHIBIT A 

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