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Release Date: 01/26/2005
Release Number: 05-133-SAN
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Washington, DC - The U.S. Department of Labor
reached an agreement with Perris, California-based Modtech Holdings Inc.
in which the company will pay a $75,000 civil penalty for failing to file
required annual reports for its 401(k) plan for two plan years and for
filing a deficient annual report for a subsequent year. This settles the
department’s reporting compliance enforcement action against the company
for plan years 2000 through 2002. |
“This
action underscores the Labor Department’s commitment to ensure that plan
administrators account for plan assets and comply with federal law
governing retirement plans,” said Ann L. Combs, assistant secretary of
the Employee Benefits Security Administration. |
The
consent order also required the company to ensure that its board of
directors’ audit committee reviews the plan audit and the independent
qualified public accountant’s report for 2004 through 2008 before filing
the plan’s annual reports with the department. This will ensure the
integrity of the oversight process and improve the quality of the audit. |
The
settlement agreement was the result of an administrative appeal of
penalties assessed by the department against Modtech on March 15, 2004,
for failing to file annual reports in 1999 and 2001. The company was also
fined for filing an annual report in 2000 that did not contain a report of
an independent qualified public accountant conforming to generally
accepted accounting principles and auditing standards required by the
Employee Retirement Income Security Act. Modtech subsequently submitted
its 2003 annual report as well as corrected reports for the 1999 through
2002 plan years. |
(U.S.
Department of Labor, EBSA, v. Modtech Holdings, Inc.)
Case No.2004-RIS-0025 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. 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
www.dol.gov/compliance. |