Printer
Friendly Version
Release Date: March 2, 2006
Release Number: 06-391-SAN (SF-21)
Contact Name: Deanne Amaden
Phone Number: 415.975.4741
San Francisco, California - The U.S.
Department of Labor has reached agreement with a now-defunct Reno
company and its bonding firm to restore $167,530 owed to the bankrupt
firm’s 401(k) plan. The action resolves all complaints by the Labor
Department against Lodging & Gaming Systems Inc. (LGS), which
develops software for casinos and hotels.
The Labor Department determined the firm failed to
forward employee contributions and loan repayments deducted from
employees’ pay to the company’s 401(k) plan. During proceedings in
August, the U.S. Bankruptcy Court in Reno ruled the debt to the plan was
not dischargeable, holding the firm’s owner, Steven H. Urie,
responsible for the full $167,530 that had not been forwarded to the
plan’s account.
The Labor Department sued Urie and LGS in June 2004
after an investigation revealed the defendants failed to collect
delinquent employer contributions and to forward to the plan employee
contributions and loan repayments deducted from employee paychecks
during 2000, 2001 and 2003. Urie allegedly used the money to pay
corporate debts and expenses after the corporation and two other
companies he owned experienced financial problems. Urie and LGS filed
for bankruptcy in December 2003. The company’s plan covered as many as
34 participants and had $755,428 in assets during 2002.
“We are very pleased to have successfully restored
the full amount due these workers,” said Assistant Secretary of Labor
for Employee Benefits Security Ann L. Combs. “This action demonstrates
the department’s commitment to protect the retirement benefits of
America’s workers.”
A consent judgment was entered in the U.S. District
Court, District of Nevada, on February 27. An independent fiduciary was
appointed to administer the plan and make final distributions to plan
participants.
The San Francisco regional office of the Employee
Benefits Security Administration (EBSA) investigated the case. Employers
and workers with questions or concerns regarding their private-sector
pension and health plans can contact the San Francisco regional office
at 415.975.4600 or through EBSA’s toll free number, 1.866.444.EBSA
(3272). Information is also available from the agency’s Web site at
www.dol.gov/ebsa.
(Chao v. Urie)
Civil Action No. CV-N-04-0623-HDM-VPC
Bankruptcy Adversary Proceeding No. 04-05161-GWZ
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. 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 the
Department's Compliance
Assistance page.
|