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Release Date: March 31, 2006
Release Number: 06-579-ATL (066)
Contact Name: Dan Fuqua/Jo Anne Burgoyne
Phone Number: 404.562.2078/404.562.2076
Miami, Florida - The U.S. Labor Department has
obtained a consent judgment ordering restoration of more than $39,000 to
the 401(k) plan of former Telcon Inc., Ft. Lauderdale, Florida.
“This action sends a clear message that we will
hold accountable those who are entrusted with employee contributions to
benefit plans,” said Howard Marsh, Atlanta regional director of the
department’s Employee Benefits Security Administration (EBSA).
The department filed suit in November 2004 alleging
that Telcon and Giovanni D’Alessandro, the company’s president,
violated the Employee Retirement Income Security Act by failing to remit
employee contributions to the 401(k) plan in a timely manner.
Entered in U.S. District Court in Miami, the consent
judgment requires the defendants to restore to the plan a total of
$39,314, to be allocated to current and former participants and
beneficiaries, except the defendants.
While in business, Telcon was a utility contactor.
The company’s 401(k) plan had 21 participants and assets totaling
$215,672 as of September 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 program requires employers to correct all
violations but allows them to avoid EBSA enforcement actions and civil
penalties as well as any applicable excise taxes. For more information
about the VFCP, visit www.dol.gov/ebsa.
The department’s suit resulted from an
investigation conducted by EBSA’s Miami district office. Employers and
workers can contact the office at 954.424.4022 or the agency’s toll
free number, 1.866.444.EBSA (3272), for help with any problems relating
to private-sector pension and health plans. In fiscal year 2005, EBSA
achieved monetary results of $1.7 billion related to pension, 401(k),
health and other benefits for millions of American workers and their
families.
(Chao v. Telcon, Inc., and Giovanni D’Alessandro)
Civil Action No. 04-61557-CIV-ALTONGA/Turnoff
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