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Release Date: July 10, 2008
Release Number: 08-951-CHI
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976
Toledo, Ohio – The U.S. Department of Labor
has obtained a consent judgment restoring more than $25,000 owed to the
retirement savings plan of Tana Corp. in Toledo as resolution of its
lawsuit against the company and plan fiduciary Sharon Scherkoske.
The suit alleged the defendants improperly used funds
intended for an employee retirement savings plan for the benefit of the
company in violation of the Employee Retirement Income Security Act (ERISA).
“The department will not hesitate to act when plan
fiduciaries fail to carry out their duty to protect the retirement plan
assets held on behalf of participants,” said Joseph Menez, director of
the Cincinnati Regional Office of the department’s Employee Benefits
Security Administration (EBSA). “Protecting workers’ benefits is a
top priority for this administration.”
The department’s suit alleged that plan fiduciary
Scherkoske failed to segregate, remit and timely forward employee
contributions and loan repayments to the retirement savings plan and
used the funds for the company’s benefit beginning in January 2002. As
of December 31, 2006, the plan had 18 participants, the latest data
available.
The judgment, entered in federal district court in
Toledo, resulted from an investigation conducted by EBSA’s Cincinnati
Regional Office. Employers and workers can reach the office at
859.578.4680 or toll-free at 866.444.3272 for help with problems
relating to private sector retirement and health plans. In fiscal year
2007, EBSA achieved monetary results of $1.5 billion related to pension,
401(k), health and other benefits for millions of American workers and
their families.
Chao v. Sharon Scherkoske
Civil Action Number 3:07cv3408
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