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Release Date: 08/25/2004
Release Number: 04-1621-NEW
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Newark, New Jersey - The U.S. Department of
Labor sued The Learning Edge Inc. of Montvale, New Jersey, and its
president for failing to properly remit more than $25,000 in employee
contributions to the company’s 401(k) plan. |
“The
Department of Labor will aggressively enforce the law to protect the
retirement funds of this nation’s hardworking men and women,” said
Francis Clisham, director of the New York regional office of the Employee
Benefits Security Administration (EBSA). “Our legal action will ensure
that these workers receive future benefits owed to them.” |
The
suit alleges that Alexander Urrea and the company violated the Employee
Retirement Income Security Act (ERISA) when they failed to remit
contributions withheld from employees’ paychecks to the 401(k) plan from
August 2000 to August 2002. The department also alleged that the
defendants failed to timely forward to and collect contributions owed to
the plan during the period 1998 to 2000. |
At
the time of the violation, Urrea was the plan trustee and president of The
Learning Edge. The suit alleges he failed to take steps to collect the
delinquent contributions owed to the plan from Learning Edge. |
The department is asking the court to require that
Urrea repay any losses with interest, undo any transactions prohibited by
law and be removed as a fiduciary to the plan. The department also is
seeking a court order to appoint an independent fiduciary to manage the
401(k), require that Learning Edge repay any illegal gains received from
the plan, and permanently bar the defendants from service to plans
governed by ERISA. |
The
Learning Edge is a computer consulting firm to public and private school
systems located in the Mid-Atlantic region. The firm relocated from
Rockland County, New York, to Montvale. The retirement plan covered as
many as 15 participants and had $107,174, according to the latest
available financial information. |
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 and civil penalties as well as any applicable excise taxes. For
more information about the VFCP, see www.dol.gov/ebsa. |
The
suit, filed in the federal district court in Newark, New Jersey, resulted
from an investigation conducted by EBSA’s New York regional office. In
fiscal year 2003, EBSA achieved record monetary results totaling $1.4
billion for retirement, 401(k), health and other programs. Employers and
workers can reach EBSA’s New York office at 212.607.8600 or through EBSA’s
toll-free number at 1.866.444.EBSA (3272), for help with problems relating
to private-sector retirement and health plans. |
(Chao
v. Urrea)
Civil Action No. 04-Civ-4056 (JAG) |
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. |