Printer Friendly Version
Release Date: September 7, 2006
Release Number: 06-1546-DEN
Contact Name: Peter Hong/Gloria Della
Phone Number: 202.693.4676/202.693.8664
Denver, Colorado - The former owners of Vancol
Industries Inc. of Denver must pay more than $150,000 to the company’s
profit sharing plan as restitution for improper loans made from the plan
to the company’s owners, plan participants and affiliated companies,
according to a consent judgment obtained by the U.S. Department of
Labor.
A manufacturer and distributor of soft drinks and
sport beverages, Vancol sponsored the plan for approximately 76
participants. The profit sharing plan had no assets as of August 24,
2006.
“Corporations and executives who are plan
fiduciaries have a duty to protect the retirement assets of
participants,” said Ann L. Combs, assistant secretary of labor for the
Employee Benefits Security Administration (EBSA). “We will
aggressively enforce the law to ensure that workers receive their
promised benefits.”
Under the judgment, former co-owners Robert E. Yates
Jr. and Renald R. Berggren were ordered to repay $150,553 to the plan
and permanently barred from service to any plan governed by the Employee
Retirement Income Security Act (ERISA) in the future. Entered in U.S.
District Court for the District of Colorado, the judgment removes Yates
as plan trustee and appoints an independent fiduciary to manage the
plan, collect the restitution and terminate the plan. Benefits will be
distributed to all eligible participants except Yates and Berggren.
The department’s suit, filed August 28, 2006,
alleged that Yates and Berggren violated ERISA when they made loans with
plan assets to themselves that were never repaid and approved loans to
business affiliates of the company and plan participants that were not
fully repaid to the plan.
The suit resulted from an investigation by EBSA's
Kansas City regional office. Employers and workers can reach the
regional office at 816.426.5131 or through EBSA’s toll-free number,
1.866.444.EBSA (3272) for help with problems relating to private-sector
retirement and health plans.
(Chao v Circle Berggren)
Civil Action Number: 1:06-cv-01715 LTB
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.
|