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Release Date: March13, 2006
Release Number: 06-432-PHI (EBSA 025)
Contact Name: Kate Dugan
Phone Number: 215.861.5101
Philadelphia, Pennsylvania - The U.S. Labor
Department has sued Austin James Associates Inc. (AJA), Pocono Pines,
Pennsylvania, and its president, Curtis M. Herman, for failing to
forward or timely remit employees’ contributions to the company’s
401(k) savings plan.
“This legal action was taken to protect the future
retirement benefits owed the employees of this company,” said Mabel
Capolongo, director of the Philadelphia regional office of the Employee
Benefits Security Administration (EBSA).
The lawsuit alleges that Herman and AJA violated the
Employee Retirement Income Security Act beginning in November 2001 when
they deducted plan contributions from employee salaries but failed to
remit or timely remit them to the plan. The suit also states that when
deferral contributions were remitted to the plan late, AJA did not
always add interest to the delinquent contributions.
The suit seeks a court order requiring the defendants
to restore all losses, including lost opportunity costs. It also asks
that Herman and AJA be removed as plan fiduciaries and that an
independent fiduciary be appointed to manage the plan. In addition, the
department asks that the company and Herman be permanently barred from
serving as fiduciaries to any plan in the future.
Filed in the U.S. District Court for the Middle
District of Pennsylvania, the suit resulted from an investigation
conducted by EBSA’s Philadelphia regional office. 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). For more information, visit
www.dol.gov/ebsa.
Employers and workers can reach the Philadelphia
office at 215.861.5300 or toll-free at 1.866.444.EBSA (3272) for help
with problems relating to private-sector retirement and health plans. In
fiscal year 2005, EBSA achieved monetary results of $1.7 billion related
to pension, 401(k), health and other benefits for millions of American
workers and their families.
(Chao v. Curtis M. Herman)
Civil Action No. 3:06-cv-512
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