Printer Friendly Version
Release Date: October 30, 2006
Release Number: 06-1722-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
Lansing, Michigan - The U.S. Department of
Labor has sued Allen Christian and Peggy Christian, officers of Omnitec
Architectural Specialties, Inc., Lansing, Michigan, for failing to
forward employee contributions to the company’s pension plan and to
segregate the plan contributions from the general operating assets of
the company.
“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Joseph Menez, director of the department’s
Cincinnati regional office of the Employee Benefits Security
Administration (EBSA).
The lawsuit alleges that despite the fact that
employee contributions were deducted from workers’ paychecks, the
contributions were not remitted to the retirement savings plan from
January 2001 to July 11, 2003, in violation of the Employee Retirement
Income Security Act (ERISA). Owner and company president Allen
Christian, and company secretary/treasurer Peggy Christian are
fiduciaries of the plan.
The suit seeks to requires the two to restore to the
plan all contributions plus interest and to remove them as plan
fiduciaries. The suit also asks that the court appoint an independent
fiduciary to administer the plan and obtain a fidelity bond, which the
defendants had failed to do.
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.
The suit, filed in federal district court in
Michigan, resulted from an investigation conducted by the Detroit
district office of EBSA. Employers and workers can reach the Cincinnati
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. In fiscal year 2005, EBSA achieved monetary
results of $1.7 billion related to pension, 401(k), health and other
benefits of millions of American workers and their families.
Chao v. Christian
Civil Action No. 1:06cv0752
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.
|