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Archived News Release — Caution: Information may be out of date.
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Release Date: 04/10/2002
Release Number: 174
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Chicago, Illinois - The owner of defunct Maywood,
Illinois Packaging Graphics, Inc. has
been barred from serving as a fiduciary or service provider to any employee
benefit plan governed by federal pension law. Corporate president Kenneth
Boese agreed to relinquish from his own account in the company’s 401(k) plan
$15,061.68 to be reallocated to the other plan participants and beneficiaries.
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Boese was removed as the plan’s sole trustee under a consent judgment and
order obtained by the U.S. Department of Labor on March 12 and replaced as the
plan’s sole trustee by an independent fiduciary, M. Larry Lefoldt of Lefoldt
and Company of Jackson, Mississippi. The independent will liquidate the plan after
paying remaining participants and beneficiaries as monies are recouped for the
plan.
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“This action reaffirms our commitment to protect the hard-earned
benefits promised by employers,” said Kenneth Bazar, director of the
department’s Chicago Regional Office of the Pension and Welfare Benefits
Administration, which investigated the case.
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The department’s suit alleged that Boese either withheld employee
contributions from employees’ paychecks from April 1, 1998 through April 7,
2000 in an untimely matter or failed to remit their contributions at all from
July 30, 1999 through June 15, 2001. The suit further alleged that he
commingled these contributions with the corporation’s operating fund.
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After Boese filed for Chapter 7 personal bankruptcy on July 27, 2001, the
department filed an adversary complaint on October 26, 2001, seeking to prevent
Boese from discharging debts owed to the plan under the bankruptcy pleading.
Boese’s debts were determined not to be dischargeable in an April 5 order as
part of the bankruptcy proceeding.
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Employers and workers can call the
Toll-Free Employee & Employer Hotline at 1.866.275.7922 for
help with problems relating to private-sector pension and health plans.
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(Chao v. Packaging Graphics, Inc.
Civil Action No. 01 C 9252)
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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 202.693.7775.
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Archived News Release — Caution: Information may be out of date.
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