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Release Date: 02/09/2004
Release Number: 04-193-DAL
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Houston, Texas - Houston-based Easy Does It,
Inc. and its owners have been sued by the U.S. Department of Labor for
failing to properly manage the company’s profit sharing plan and failing
to distribute plan assets to more than 20 participants. Easy Does It, Inc.
provided alcohol and drug abuse treatment services. |
“This
action underscores the Labor Department and Labor Secretary Elaine L. Chao’s
commitment to protect the benefits employers promise to their employees,”
said Steven Eischen, director of the Dallas regional office of the
Employee Benefits Security Administration (EBSA), whose office
investigated the case. |
The
suit alleges the firm, Bridgette Davis and Eugene Davis violated the
Employee Retirement Income Security Act (ERISA) when they failed to
properly administer the plan and distribute plan assets to participants of
the profit sharing plan. The Davises were founders and officers of Easy
Does It, Inc. The suit also alleges that the defendants failed to hold
plan assets in trust and used the money to benefit themselves. The
defendants’ actions resulted in a loss of approximately $38,753.43. |
The
department is seeking a court order to require that the defendants restore
to the plan all losses with interest, to remove Bridgette Davis as a
trustee and the firm as the plan’s administrator, to appoint an
independent fiduciary to manage the plan, to require the defendants to pay
the costs of the independent fiduciary, and to permanently bar the Davises
from serving in positions of trust to any plan governed by ERISA. |
Employers with similar problems, who are not yet the
subject of an investigation by EBSA, may be eligible to participate in the
department's Voluntary Fiduciary Correction Program (VFCP). Participation
in the VFCP requires employers to make workers whole but allows them to
avoid EBSA enforcement actions, civil penalties and any applicable excise
taxes. For more information see www.dol.gov/ebsa. |
In
fiscal year 2003, EBSA has achieved record monetary results of $1.4
billion related to the pension, 401(k), health and other benefits of
millions of American workers and their families. The Dallas regional
office of the department’s Employee Benefits Security Administration
investigated the case. Employers and workers can reach the Dallas regional
office at 214.767.6831 or through EBSA’s toll-free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans. |
Chao
v. Easy Does It, Inc.
Civil Action No. H-04-0217 |
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 202.693.7755. |