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Release Date: March 6, 2006
Release Number: 06-404-BOS/BOS 2006-057
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Boston, Massachusetts - The U.S. Department of
Labor has sued the president of now-defunct e-tel Corp., West Warwick,
Rhode Island, seeking restoration of funds to the company’s 401(k)
plan.
According to James Benages, Boston regional director
for the department’s Employee Benefits Security Administration (EBSA),
the suit was filed in the U.S. District Court for the District of Rhode
Island against Matthias E. Lukens whose company ceased operations
January, 2003, and was placed in receivership by the State Court of
Rhode Island. The company’s 401(k) profit sharing plan was established
January 1, 2000.
The Labor Department’s lawsuit alleges that from
March 16, 2001, to the present e-tel Corp. withheld employee
contributions but failed to forward them to the 401(k) plan, a violation
of the Employee Retirement Income Security Act (ERISA), the federal law
that protects private employee pension and benefit plans.
Said Benages: “Our legal action in this case should
put employers and plan sponsors on notice that we will not hesitate to
resort to litigation to enforce the law and make sure that plan
participants receive the benefits to which they are entitled.”
The department’s suit asks the court to prohibit
the defendant from future violations of ERISA and permanently bar him
from serving as a fiduciary to any employee benefit plan covered by the
retirement law. The suit also asks the court to order Lukens to undo his
prohibited transactions and restore to the plan all losses including
interest -- a total of $38,147.25 -- resulting from his breaches of
fiduciary duty. The ultimate goal of the suit is to distribute to each
participant his or her proper share of the plan’s assets, after which
the plan will be terminated.
The Labor Department’s legal action resulted from
an investigation conducted by EBSA’s Boston regional office. In fiscal
year 2005, EBSA achieved record monetary results of $1.7 billion related
to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can contact
the Boston regional office at 617.565.9600 or EBSA’s toll-free number,
1.866.444.EBSA (3272), for more information on the requirements of ERISA
or for help with problems relating to private-sector pension and health
plans. Additional information can be found at www.dol.gov/ebsa.
(Chao v Matthias E. Lukens)
Civil Action Number: 06-93 ML
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.
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