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Release Date: 02/14/2002
Release Number: V-119
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Chicago, Illinois - The U. S. Department of
Labor obtained a consent judgment on January 24, 2002 permanently barring
the trustee of the Sure-Tite Roofing, Inc. profit sharing plan in Chippewa
Falls, Wisconsin, from serving any employee benefit plan covered by the
Employee Retirement Income Security Act (ERISA). |
Robert Louis Starkmann, owner of the now defunct Sure-Tite
Roofing, Inc. and the plan trustee, agreed to waive his pension account
balance to repay $5,392.57 owed to the plan as restitution for failure to
timely remit employee contributions to the plan. The court order
allows Starkmann to remain as the plan trustee until the profit sharing
assets are distributed to other participants and the plan is terminated. |
An agreement in the bankruptcy court in Eau Claire,
Wisconsin also stipulated that Starkmann cannot discharge the debt owed to
the plan after the department filed an adversary complaint to prevent him
from doing so during his Chapter 7 bankruptcy proceedings. |
On July 9, 2001, the department sued Starkmann and the
company for diverting plan assets to pay corporate expenses and failure to
obtain a fidelity bond as required by ERISA. |
Sure-Tite was a Subchapter S corporation, which
employed 12 people until they were terminated in October 2000 due to the
company’s financial problems. Since then, Sure-Tite has ceased
operations. The profit sharing plan had 10 participants and assets
totaling $16,146.62 as of December 31, 2000. |
“This case exemplifies the department’s commitment
to protect the benefits promised to employees," said Kenneth Bazar,
director of the Chicago regional office of the department’s Pension and
Welfare Benefits Administration. For questions about pension and
health benefits, the public can contact the regional office at
312.353.0900. |
The consent judgment, which resulted from an
investigation by the Chicago PWBA office, was entered in federal district
court in the Western District of Wisconsin. |
(Chao v. Sure-Tite Roofing, Inc., Civil Action No.
01-C-0391S
Chao v. Robert L. Starkmann in U.S. Bankruptcy Court, Case No. 01-11623-7
Chapter 7) |
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7775. |