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Release Date: March 30, 2006
Release Number: 06-466-KAN
Contact Name: Norma Conrad
Phone Number: 816.426.5481
Columbus, Nebraska - The U.S. Department of
Labor filed a lawsuit in the U.S. District Court of Nebraska against the
trustee of the Columbus Irrigation Inc. 401(k) plan for violations of
the Employee Retirement Income Security Act.
The suit alleges that Marvin J. Charipar, trustee and
president, treasurer, director and operator of Columbus Irrigation,
failed to forward plan contributions deducted from employees’
paychecks from February 2003 to January 2004 and retained those assets
in the company’s corporate account.
Steven Eischen, director of the Kansas City regional
office of the Employee Benefits Security Administration (EBSA), said,
“The law states that plan fiduciaries have a responsibility to manage
the money set aside in retirement plans for the benefit of employees and
their families. Our legal action is designed to restore funds to pay
future benefits to these plan participants.”
Charipar terminated the 401(k) plan August 1, 2004.
According to the suit, he is being required to restore all losses with
interest to the now-defunct plan and to correct any transactions
prohibited by law.
Employers with similar problems, who are not
currently the subject of an EBSA investigation, may be eligible to
participate in the department’s Voluntary Fiduciary Correction Program
(VFCP). Participation in the VFCP requires employers to correct any
violations but allows them to avoid EBSA enforcement actions and civil
penalties as well as applicable excise taxes. For more information about
the VFCP, see www.dol.gov/ebsa.
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.
Employers and workers can reach EBSA’s Kansas City
regional office at 816.426.5131 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. Marvin J. Charipar)
Civil Action No.: 8:06CV295
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