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Release Date: October 9, 2008
Release Number: 08-1390-CHI
Contact Name: Scott Allen or Brad Mitchell
Phone Number: 312.353.6976
Fenton, Michigan – The U.S. Department of
Labor has obtained a consent judgment against the president of Control
Pak International in Fenton, providing restoration of $19,165 to the
company’s 401(k) savings plan as restitution for misuse of 401(k)
assets in violation of the Employee Retirement Income Security Act (ERISA).
The department’s lawsuit resolved by this judgment
alleged that, from January through November 2001, Timothy Glinke,
president and owner of Control Pak International, failed to timely remit
employee contributions to their 401(k) plan. From December 2001 through
July 2003, Glinke also failed to remit the employee contributions,
instead using those contributions for the company’s general operating
expenses.
“The department will take appropriate legal action
when plan fiduciaries fail to carry out their duty to properly protect
the retirement assets held on behalf of participants,” said Paul
Baumann, acting director of the department’s Cincinnati Regional
Office of the Employee Benefits Security Administration (EBSA), which
investigated the case.
Employers with similar problems who are not yet the
subjects of investigations 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 judgment was entered in the U.S. District Court
for the Eastern District of Michigan. Employers and workers can reach
EBSA’s Cincinnati office at 859.578.4680 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. Timothy Glinke
Civil Action Number: 2:08-cv-11528
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