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Release Date: 03/17/2005
Release Number: 05-435-SAN (SF-025)
Contact Name: Deanne Amaden
Phone Number: 415.975.4741
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San Francisco, California - The U.S. Department
of Labor has sued Corona-based WesTech Solutions Corp. and its president,
Donald Cantral, to restore employee contributions not remitted to the
company’s 401(k) plan. |
The
suit seeks $11,323.18 plus interest for 20 former employees who were plan
participants. The defendants allegedly commingled employees’
contributions with the general corporate account. This money was never
transferred into the companies’ 401(k) plan from the time the plan was
opened on October 3, 2001. |
The
suit, filed in federal district court for the Central District of
California, Eastern Division, seeks to force WesTech and Cantral to
restore all money owed to the 401(k) plan. The suit also seeks to
permanently bar Cantral from acting as a fiduciary or as a service
provider of any employee benefit plan covered by the Employee Retirement
Income Security Act. The defendants would also be required to appoint and
pay for an independent fiduciary to distribute the plan’s assets. |
“We’re
working aggressively to restore these workers’ benefits,” said Billy
Beaver, Los Angeles regional director of the Employee Benefits Security
Administration. “The employees participating in this plan deserve to
have their money returned to them.” |
WesTech Solutions built and designed web-based computer
system applications. The company was based in Riverside County but
suspended operations in September 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 (VFCP). Participation in the program requires
employers to reimburse plans and participants 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. |
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 with questions
or concerns regarding their private-sector pension and health plans can
contact the EBSA regional office in Los Angeles at 626.229.1000 or EBSA’s
toll free number, 1.866.444.EBSA (3272). Information is also available
from the agency’s Web site at www.dol.gov/ebsa. |
(Chao
v. WesTech Solutions Corp.)
Civil Action No. EDCV05 – 0198-SGL |
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. |