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Release Date: June 13, 2008
Release Number: 08-755-CHI
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976
Roseville, Minnesota – The U.S. Department
of Labor has sued the president and sole owner of Plywood Industries
Inc. in Roseville, for failing to forward to the company’s health plan
contributions withheld from employees’ paychecks, in violation of the
Employee Retirement Income Security Act (ERISA).
The department’s lawsuit alleges that from January
2006 through July 20, 2007, company president and owner Catherine
Ellingen caused the company to retain employees’ health contributions
and use the assets to fund ongoing corporate operations. The department
is seeking repayment of the contributions plus interest, and to
permanently bar Ellingen from servicing as a fiduciary to any other
employee benefit plan subject to ERISA.
“This department is committed to helping workers
get their benefits when plan assets are either misused or not quickly
forwarded to the appropriate accounts,” said Steve Eischen, director
of the department’s Employee Benefits Security Administration (EBSA)
regional office in Kansas City, Mo.
The suit, filed in federal district court in
Minneapolis, Minnesota was investigated by EBSA’s Kansas City Regional
Office. Employers and workers can reach the office at 816.285.1800 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. Ellingen
Civil Action Number 08-cv-02170
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