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Release Date: July 15, 2008
Release Number: 08-820-CHI
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976
Dublin, Ohio – A federal district court in
Columbus has granted the U.S. Department of Labor a consent judgment to
distribute more than $600,000 in 401(k) assets owed to former workers of
American Systems Consulting Inc. of Dublin.
Under the judgment, Larry Lefoldt was appointed as an
independent fiduciary to terminate the plan after distributing plan
assets to eligible participants and beneficiaries. The judgment resolves
the department’s lawsuit against the company, Cliff Gallatin and Loree
Gallatin to recover 401(k) plan assets that were improperly used for the
benefit of the company. The Gallatins, former plan trustees and officers
of the company, have paid $100,860 in delinquent employee contributions
and lost opportunity costs owed to the plan.
“This case reaffirms our commitment to vigorously
enforce federal benefits law,” said Bradford P. Campbell, assistant
secretary of labor for the Employee Benefits Security Administration (EBSA).
“Our action today is designed to recoup assets to pay future
retirement benefits of participants and their beneficiaries.”
The suit 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 number 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. Gallatin
Civil Action Number 2:08-cv-00019
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