|
Release Date: 03/30/2005
Release Number: 05-517-ATL
Contact Name: Gloria Della
Phone Number: 202.693.8664
|
Printer Friendly
Version
|
|
Atlanta, Georgia - The U.S. Department of Labor
has sued defunct Omegasys Inc., Tucker, Georgia, and its CEO for failing
to forward and timely remit to the company’s 401(k) plan $79,407.80 in
contributions withheld from workers’ paychecks. |
“This
lawsuit underscores the Labor Department’s commitment to hold
accountable those who are entrusted with overseeing workers’ retirement
plans. One of the most important responsibilities is remitting money from
workers’ wages to the plan to make sure assets are available to pay
future retirement benefits,” said Howard Marsh, director of the Atlanta
regional office of the Employee Benefits Security Administration (EBSA). |
The
lawsuit alleges that Omegasys Inc., which served as the plan’s
administrator, and plan trustee Keith R. Jackson violated the Employee
Retirement Income Security Act (ERISA) by failing to ensure that employees’
contributions were remitted to the plan. From December 11, 1998 to April
12, 2002, the suit alleges 156 instances of late contributions resulting
in losses to the plan. In addition, the company co-mingled plan assets
with corporate assets. |
Jackson
allegedly failed to monitor the company’s activity or take action to
remedy its failure to forward the contributions to the plan. At the time
of the violations, Jackson was the chief executive officer and chief
financial officer of Omegasys. Both defendants allegedly failed to obtain
a fidelity bond as required by law. |
The suit seeks a court order to restore all losses with
interest and offset Jackson’s retirement account to repay money owed to
the 401(k). The department also asks the court to remove the defendants
from their positions with the plan, permanently bar them from service to
any plan governed by ERISA, and appoint a successor trustee and
administrator to terminate the plan and distribute its assets to eligible
participants. |
Omegasys,
also known as Omega Environmental Services Inc., was engaged in
environmental construction before going out of business. The firm
sponsored the 401(k) for 20 participants and had $223,585 in assets as of
January 31, 2002. |
Employers
with similar problems, who are not yet the subject of an investigation by
EBSA, may be eligible to participate in the department’s Voluntary
Fiduciary Correction Program. Participation in the program requires
employers to correct ERISA violations but allows them to avoid EBSA
enforcement actions and civil penalties as well as any applicable excise
taxes. For information, see www.dol.gov/ebsa. |
The
Atlanta regional office conducted the investigation leading up to the
lawsuit filed in federal district court in Atlanta. In fiscal year 2004,
EBSA achieved record monetary results of $3.1 billion related to the
pension, 401(k), health and other benefits of millions of American workers
and their families. Employers and workers can reach the Atlanta office at
404.562.2156 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. Omegasys, Inc.)
Civil Action No. 1:05-cv-0432 |
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page. |