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Release Date: March 27, 2008
Release Number: 08-419-BOS/BOS 2008-095
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Hartford, Connecticut – American Air Tool
Enterprises LLC of Centerbrook, Connecticut, and Scott Saunders, trustee
to the company’s 401(k) plan, have agreed to restore $18,286.51 plus
interest to the plan to settle a lawsuit filed by the U.S. Department of
Labor alleging violations of the Employee Retirement Income Security Act
(ERISA).
The suit, filed in the U.S. District Court for the
District of Connecticut in Hartford, alleged that the company and
Saunders failed to forward to the plan contributions deducted from
employee paychecks. The American Air Tool Enterprises LLC 401(k) Profit
Sharing Plan provides retirement benefits for company employees. The
Employee Benefits Security Administration’s Boston Regional Office,
which investigated the case, enforces ERISA requirements to protect
private sector employee benefit plans.
James Benages, regional director for EBSA in Boston,
said, “These defendants failed to discharge their fiduciary duties to
the plan and its participants. The funds of employee benefit plans are
to be used for the sole benefit of plan participants and beneficiaries,
and not for the benefit of the company that sponsors the plan.”
A consent judgment obtained by the department also
orders the defendants to ensure that each of the plan’s participants
receives his or her respective share of the restitution made to the
plan.
Employers and workers can reach EBSA at 617.565.9600
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.
Additional information can be found at www.dol.gov/ebsa.
Chao v. American Air Tool Enterprises LLC
Civil Action Number 3:08-CV-409
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