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EBSA News Release: [03/27/2008]
Contact Name: Dan Fuqua or Michael Wald
Phone Number: (404) 562-2078 or x2076
Release
Number: 08-0289-ATL
U.S. Department of Labor obtains order requiring Seneca, S.C., company
to restore more than $1.5 million to 401(k) profit-sharing plan
ATLANTA — The U.S. Department of Labor has obtained a consent judgment in the U.S. District Court for South Carolina ordering Associated Technical Training Services Inc. (ATTSI) and plan fiduciaries to restore $1,523,227 to the company's 401(k) profit-sharing plan.
"This legal action protects the workers and their families who have been counting on this 401(k) for their retirement," said U.S. Secretary of Labor Elaine L. Chao.
Under the judgment, the defendants have agreed to restore $1,269,881 in losses plus $253,346 in lost earnings. The judgment also bars ATTSI and plan trustee Leslie M. Schile from future service as fiduciaries to any plan covered by the Employee Retirement Income Security Act (ERISA).
The Labor Department alleged that the plan's fiduciaries caused losses through mismanagement and acts prohibited under ERISA by making imprudent investments and improper loans. Besides the corporation, the defendants included Leslie M. Schile and the estates of Gerald Schile and Leslie B. Schile.
In addition to the restitution, Leslie M. Schile and the estate of Leslie B. Schile already have incurred costs associated with the appointment of an independent fiduciary to oversee plan assets on behalf of 24 participants.
Employers and workers can reach the Employee Benefits Security Administration's (EBSA) Atlanta Regional Office at 404-302-3900 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.
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Chao v. Associated Technical Training Services Inc.
Civil Action Number 6:2008cv00659
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