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Release Date: 05/24/2005
Release Number: 05-571-ATL (107)
Contact Name: Dan Fuqua
Phone Number: 404.562.2078
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Atlanta, Georgia - The U.S. Labor Department
obtained a default judgment ordering the restoration of more than $4,300
to the Matlack Medical Imaging 401(k) plan, Hillsborough, North Carolina. |
“This case sends a clear message that the Labor
Department will hold accountable those who are entrusted with employee
contributions to benefit plans,” said Howard Marsh, Atlanta regional
director of the Employee Benefits Security Administration (EBSA). |
The Labor Department filed suit in May 2004 alleging
that James Matlack Jr. and Matlack Medical Imaging Inc. violated
provisions of the Employee Retirement Income Security Act (ERISA). The
suit specifically charged that contributions withheld from employees’
salaries were not remitted to the plan and that the contributions were
used for purposes other than to provide benefits. |
Entered in U.S. District Court in Durham, North
Carolina, the default judgment orders Matlack and co-defendant Norwood
Electronics Inc. -- the successor corporation to Matlack Medical Imaging
-- to make restitution to the plan, from which distribution will be made
to participants -- $2,315.64 to Phillip Binkley and $2,052.08 to James
Gaston. The defendants are also ordered to pay post-judgment interest on
any unpaid balances of these amounts, terminate the plan and distribute
any remaining assets. |
The court further barred the defendants from serving as
fiduciaries, trustees, agents or representatives of any employee benefit
plan covered by ERISA. |
Employers
with similar problems, who are not yet the subject of an investigation by
EBSA, could be eligible to participate in the department’s Voluntary
Fiduciary Correction Program. Participation in the program requires
employers to correct violations of the law but allows them to avoid EBSA
enforcement actions and civil penalties, as well as excise taxes. For more
information about the VFCP, see www.dol.gov/ebsa. |
The
suit followed an investigation by EBSA’s Atlanta regional office.
Employers and workers can contact the regional office at 404.562.2156 or
EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems
relating to private-sector pension and health plans. |
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. |
(Chao
v. James Matlack, Jr. et al.)
Civil Action No. 1:04-cv00429 |
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page. The information in this news release will be made available
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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. |