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Release Date: 01/14/2004
Release Number: 04-42-ATL
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Atlanta, Georgia - The U.S. Department of Labor
sued Dieter Bryce, Inc. of Gaston, South Carolina and its executives for
failure to forward employee contributions to their retirement plan and
misusing plan assets to pay the operating expenses of the firm. |
Dieter
Bryce is a South Carolina lumber equipment manufacturer. The plan allowed
employees to have 401(k) contributions withheld from their paychecks.
According to the latest information available to the department, the plan
had $608,577 in assets and covered 46 participants. |
The
suit alleges that the company and its executives Jeffrey P. Sasko and Gene
C. Carter violated the Employee Retirement Income Security Act (ERISA).
The suit also alleges that they failed to remit employee contributions
owed to the 401(k) beginning in April 2001 and to forward employee
contributions in a timely manner starting in January 1998. Sasko and
Carter served as trustees. |
The
department is seeking a court order to require the company and its
executives to repay all losses with interest and offset the 401(k)
accounts of Sasko and Carter to repay any losses. The suit asks that they
correct transactions prohibited by law, return illegal profits and
permanently bar Sasko and Carter from servicing plans governed by ERISA in
the future. |
“Trustees of a 401(k) plan have a responsibility to
ensure that the assets of the plan are used solely to benefit
participants. One of the most important duties is putting money from
workers’ wages into their 401(k) accounts on time,” said Howard Marsh,
director of the Atlanta regional office of the Employee Benefits Security
Administration (EBSA) that investigated the case. |
Employers
with similar problems, who are not yet the subject of an investigation by
the EBSA, may be eligible to participate in the department's Voluntary
Fiduciary Correction Program (VFCP). Participation in the program requires
employers to make workers whole 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. |
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. |
(Chao
v. Dieter Bryce, Inc.)
Civil Action No. 3:04-41-22 |
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |