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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
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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