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Release Date: 04/27/2004 Release
Number: 44 (04-708-SAN) Contact Name: Tino Serrano Phone
Number: 415.975.4742 |
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San Francisco, California - The U.S. Department of
Labor has obtained consent judgments in both the U.S. Bankruptcy Court and the
U.S. District Court in Nevada to restore $11,500 owed to the 401(k) profit
sharing plan of 27 former employees of Las Vegas-based Quality Home Foods Inc.
Quality Home Foods is a defunct business that provided home delivery of meats,
produce and other foods. |
When Robert Marc Raskin, former owner and
president of Quality Home Foods Inc. filed for Chapter 7 bankruptcy protection
in January 2003, the U.S. Labor Department filed a complaint in the bankruptcy
court. The department alleged that Raskin's debt to the company's 401(k) plan,
while acting as a fiduciary of the plan, involved misappropriation of the
pension funds and could not be discharged by the bankruptcy. |
A second complaint filed in April 2004 in U.S.
District Court alleges that Raskin did not act in the best interests of the
plan when he failed to forward to the plan employee contributions, participant
loan repayments and employer matching contributions. |
The judgment in bankruptcy court was approved on
April 9, 2004, and the district court judgment was approved on April 19, 2004.
Under the judgments, Raskin must repay $11,500 to the 401(k) plan, forfeit his
own account balance in the plan and accept a court-appointed independent
fiduciary to administer the plan. Raskin also permanently barred from acting as
a fiduciary of an employee benefit plan. |
"This sends a strong message to those responsible
for employee benefit plans that they cannot misuse their employees' funds or
have their personal debts forgiven at the expense of the employees," said Bette
Briggs, regional director of the Labor Department's Employee Benefits Security
Administration (EBSA) in San Francisco, which investigated the case. |
In fiscal year 2003, EBSA achieved record monetary
results of $1.4 billion related to the pension, 401(k), health and other
benefits of millions of American worker and their families. Employers and
workers with questions or concerns regarding their private-sector pension and
health plans can contact the EBSA regional office in San Francisco at
415.975.4600 or EBSA's toll free number, 1.866.444.EBSA (3272). Information is also
available from the agency's web site at www.dol.gov/ebsa.
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(Chao v. Raskin) Civil Action No. BK-S-03-10488
RCJ (Bankruptcy Court) Civil Action No. CV-S-04-0444-PMP-RJJ (District
Court) |
U.S. Labor Department news releases are accessible
on the Internet at www.dol.gov. The information in this news release will be
made available in alternate format upon request (large print, Braille, audio
tape or disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department
of Labor is committed to providing America's employers and employees with easy
access to understandable information on how to comply with its laws and
regulations. For more information, please visit
www.dol.gov/compliance. |