Archived News Release Caution: Information may be out of date.
|
Release Date: 03/15/2004
Release Number: 04-403-CHI
Contact Name: Rita Ford
Phone Number: 202.693.8673
|
Printer Friendly
Version
|
|
Cleveland, Ohio - The U.S. Department of Labor
has sued defunct Allied Construction Group, Inc., of North Olmsted, Ohio,
and its 401(k) plan trustee for failing to remit employee contributions to
the plan and retaining the contributions with company’s general assets. |
“This
action demonstrates the department’s commitment to protection of the
retirement benefits promised to America’s workers,” said Joseph Menez,
director of the Cincinnati regional office of the department’s Employee
Benefits Security Administration (EBSA), which investigated the case. |
The
suit alleges that Allied Construction and Thomas E. Zimmer violated the
Employee Retirement Income Security Act (ERISA) by failing to remit
employee contributions withheld from employees’ paychecks to the company’s
401(k) plan from May 2002 through January 2003. They also failed to timely
remit employee contributions from January 1999 through April 2002 and to
replace the plan’s fidelity bond after the prior bond was cancelled in
January 2003. Zimmer was the owner of Allied and the 401(k) trustee. |
The
suit, filed in the federal district court in Cleveland, seeks to restore
all losses to the plan, including lost opportunity costs, to appoint an
independent fiduciary to manage the plan, distribute the assets and
terminate the plan and to obtain a fidelity bond for the plan. The suit
also seeks to permanently bar Zimmer from serving as a fiduciary to any
employee benefit plan covered by ERISA. |
In related action, the department filed an adversary
complaint in federal bankruptcy court in Cleveland to prevent Zimmer from
discharging any debt he owes to the plan. |
Allied
specialized in general construction of commercial buildings, restaurants,
office buildings and post offices. The company ceased doing business in
February 2003. The plan had eight participants and $75,054 in assets as of
June 30, 2003. |
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. |
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
regional office at 859.578.4680 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. Zimmer) Civil Action No. 1:04-cv-475
(U. S. v. Zimmer) Adversary Complaint No. 03-25848 |
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.
| |
|