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Release Date: March 4, 2008
Release Number: 08-274-CHI
Contact Name: Brad Mitchell/Scott Allen
Phone Number: 312.353.6976

U.S. Labor Department sues owner of South Bend company to recover more than $40,000 in 401(k) and health plan funds

South Bend, Indiana – The U.S. Department of Labor has sued the owner and fiduciary of 401(k) and health care plans for employees of Allegra Print & Imaging Inc. in South Bend for improperly using assets for the benefit of the company in violation of the federal Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that during various periods over five years, Sean Eagen, the plan fiduciary, caused the company to retain employees’ 401(k) contributions, loan repayments and health plan premiums. The defendant also allegedly failed to remit certain contributions and loan repayments in a timely manner.

The department seeks to recover more than $40,000 that Eagen failed to remit to the plans or remitted untimely, causing losses to the plans. In addition, the department’s suit seeks to permanently bar him from serving as a fiduciary to any ERISA-covered plan, and to appoint an independent fiduciary to distribute assets and terminate the plans.

“The Labor Department acts quickly to help workers get their benefits when plan assets are misused or plans are abandoned,” said Steve Haugen, director of the department’s Chicago Regional Office of the Employee Benefits Security Administration (EBSA), which investigated the case.

The suit was filed in federal district court in South Bend. Employers and workers can reach EBSA’s Chicago Regional Office at 312.353.0900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Allegra Print & Imaging Inc.
Civil Action Number: 3:08-CV-00097

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