Printer
Friendly Version
Release Date: March 20, 2006
Release Number: 06-502-ATL (056)
Contact Name: Dan Fuqua/Jo Anne Burgoyne
Phone Number: 404.562.2078/404.562.2076
Atlanta, Georgia - The U.S. Labor Department
has obtained a consent judgment and order of non-dischargeability
requiring Alfonzo Hall to restore more than $58,000 to the 401(k) plan
of former International Agile Manufacturing (IAM), Statesboro, Georgia.
“This case sends a strong message that the Labor
Department will hold accountable those who are entrusted with employee
contributions to benefit plans,” said Howard Marsh, director of the
Atlanta regional office of the Employee Benefits Security Administration
(EBSA).
The department’s lawsuit alleged that IAM and
Alonzo Hall, the company’s president and CEO, violated provisions of
the Employee Retirement Income Security Act (ERISA). The suit alleged
they breached their fiduciary responsibilities by, among other things,
failing to remit to the 401(k) plan contributions that were withheld
from employees’ pay checks.
Entered by U.S. Bankruptcy Court, the order also bars
Hall from serving as a fiduciary of any employee benefit plan covered by
ERISA.
IAM filed for bankruptcy in September 2003. As of
December 2003, the company’s 401(k) plan had 48 participants and more
than $88,300 in plan assets.
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 VFCP requires employers to correct violations of
the law 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.
EBSA’s Atlanta regional office investigated the
case. Employers and workers can contact the 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
2005, EBSA achieved monetary results of $1.7 billion related to the
pension, 401(k), health and other benefits for millions of American
workers and their families.
(Chao v. International Agile Manufacturing)
Civil Action No. 05-06056-JSD
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.
|