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Release Date: 02/22/2002
Release Number: 02-19
Contact Name: D. Petterson or E. Todd
Phone Number: 214.767.4776 x222 or x221
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Dallas, Texas - Executives of Community Home
Health Care in Napoleonville, Louisiana, and the plan administrator have
been sued by the U.S. Department of Labor for using employee contributions
to benefit themselves instead of transmitting the assets to the firm’s
401(k) plan. |
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“The department is committed to protect the
hard-earned assets contributed by employees for their retirement,” said
Steve Eischen, director of the Dallas regional office of the Pension and
Welfare Benefits Administration (PWBA). |
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The suit, filed February 11 in federal district court
in New Orleans, alleges that plan administrators Kerry Jones, Earl Brown
and Virgious Brown violated their fiduciary duties under the Employee
Retirement Income Security Act (ERISA). The suit alleges the
defendants failed to remit employee contributions to the plan’s account
from September 1998 to February 1999. |
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The department asks the court to require the defendants
restore all losses to the plan plus interest, distribute the restored
assets to plan participants and terminate the plan. |
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Community Home Health Care is a home health agency.
The 401(k) profit sharing plan covered 87 participants and had $23,237 in
assets as of December 31, 1997. |
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This case resulted from an investigation conducted by
the Dallas regional office of PWBA into alleged violations of ERISA.
Employers and employees can contact the Dallas office at 214.767.6831 for
help with problems relating to private-sector pension and health plans. |
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(Chao v. Jones
Civil Action No.02-0377) |
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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. |
