Archived News Release Caution: Information may be out of date.
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Release Date: 06/09/2004
Release Number: 04-987-ATL
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Atlanta, Georgia - The U.S. Department of Labor
has obtained settlements with fiduciaries of the 401(k) plan of Smith
Advanced Technology Inc. of Huntsville, Alabama that bar them from serving
plans governed by the Employee Retirement Income Security Act (ERISA). The
company’s president, Bill G. Smith, also restored $44,621.48 to the plan
as restitution for using employee 401(k) contributions to pay corporate
expenses and creditors. |
Under
the settlement, Smith is permanently barred from service to ERISA plans in
the future, and trustees Jerry Peevy and Bart Smith are barred from
serving plans for three years. In an earlier settlement, trustee Glen D.
West made restitution. |
The
department sued the defendants on November 14, 2003, in federal district
court in Birmingham. The defendants allegedly violated ERISA when they
failed to remit employee contributions to the plan at various times
between June 1, 2001, and March 31, 2002. The suit also alleged that the
defendants did not hold the plan’s assets in trust. |
Smith
Advanced Technology was a software provider to cable and utility companies
and sponsored the plan for 31 participants. The 401(k) had $685,949 in
assets at the end of 2000, which has since been distributed to
participants. |
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. |
“Our
court action ensures that these plan participants recoup the money they
set aside for their retirement years,” said Howard Marsh, Atlanta
regional office director of the Employee Benefits Security Administration. |
This
case was investigated by EBSA’s regional office in Atlanta. 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 EBSA at 404.562.2156
or EBSA’s toll free number, 1.866.444.EBSA (3272), for help with any
problems relating to private-sector pension and health plans. |
(Chao
v. Smith Advanced Technology, Inc.)
Civil Action No. 5:03 CV 3064 |
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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