Archived News Release Caution: Information may be out of date.
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Release Date: 02/05/2004
Release Number: 04-76-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Chicago, Illinois - Executives of defunct Omni
Circuits, Inc., of Glenview, Illinois, were ordered to repay $23,996 to
the company’s health, dental and life insurance plans and to distribute
that money to 72 participants, according to a consent judgment and order
obtained recently by the U.S. Department of Labor. |
In
addition, the judgment bars James E. Schwarz, Sr., and his daughter,
Corinne Moderhock, from servicing any plan governed by the Employee
Retirement Income Security Act (ERISA). They also must pay all
administrative costs associated with distributing the money to the plans’
participants. Omni Circuits, the plans’ administrator, ceased operations
on February 21, 2002. |
The
department sued Schwarz and Moderhock, who were, respectively, the company’s
president and vice president for finance, over the delinquent premiums and
payments made by employees. |
“This
action underscores Labor Secretary Elaine L. Chao’s commitment to
protect the benefits that employers promise to their employees,” said
Ken Bazar, director of the Chicago regional office of the Employee
Benefits Security Administration (EBSA), which investigated the case. |
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 make workers whole but allows them to
avoid EBSA enforcement actions, civil penalties and any applicable excise
taxes. For more information see www.dol.gov/ebsa. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach the
Chicago regional office at 312.353.0900 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. Schwarz)
Civil Action No. 03 C 7430 |
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. |
Archived News Release Caution: Information may be out of date.
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