Archived News Release Caution: Information may be out of date.
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Release Date: 03/09/2004
Release Number: 04-389-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Cincinnati, Ohio - The U.S. Department of Labor
obtained a default judgment on March 8, 2004, ordering the president of
defunct Mershon Metal Maintenance, Inc. in Cincinnati, Ohio, to restore
$36,094 owed to the plan. The department sued Joseph Mershon for failing
to forward employee contributions to the plan. |
Mershon,
the plan’s administrator, also is permanently barred from serving as a
fiduciary to any plan governed by the Employee Retirement Income Security
Act (ERISA). |
The
department sued Mershon on October 7, 2002 in federal district court in
Cincinnati for allegedly commingling plan assets with the general assets
of the company. He also failed to remit the assets to the plan and did not
provide accurate statements to participants about their plan accounts. In
addition, Mershon allegedly failed to obtain a fidelity bond as required
by law, to create written plan documents and to file annual financial
reports with the federal government. |
Joseph
Menez, director of the Cincinnati regional office of the department’s
Employee Benefits Security Administration (EBSA) said, “To protect
against the financial hardships of employers, the law provides that
employee contributions must be timely forwarded to the plan.” |
At one time, the plan covered up to 15 participants.
Mershon Metal ceased operating in February 1997. |
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 and civil penalties as well as any applicable excise taxes. For
more information about the VFCP, see www.dol.gov/ebsa. |
The
case was investigated by the EBSA’s Cincinnati regional office. 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 contact the
Cincinnati regional office at 859.578.4680 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. Mershon)
Civil Action No. CV-1-02-717 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. 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
www.dol.gov/compliance. |
Archived News Release Caution: Information may be out of date.
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