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Release Date: 12/14/1998 Release Number:
KC-PWBA-12 Contact Name: Norma J. Conrad Phone Number:
816.426.5491 Contact Name: Patrick A. Hand Phone
Number:826.426.5490 Contact Name: Sharon Morrissey Phone Number:
202.219.8921 |
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The owner of a St. Joseph, Mo. printing company and his manager
have been sued by the U.S. Department of Labor for failing to forward $6,024 in
contributions deducted from employee paychecks to the companys 401(k)
defined contribution plan. |
Prompt Printing allegedly withheld the money from its
employees paychecks, but failed to segregate the money from the
companys general assets and forward it to the plan from March 1994 until
October 1995. Named in the lawsuit are owner Lynn Taylor and plant manager
Steven Porter. |
The plan, as established in January, 1994, allows employees to
defer a portion of their compensation as contributions to the plan. There were
six participants, including Porter, in the 401(k) plan. According to its
third-party administrator, the 401(k) plan had no assets since no contributions
were ever made to the plan. Prompt Printing ceased business operations in
October, 1994. |
The departments lawsuit seeks to have a court order
requiring the defendants to restore to the plan all losses, including lost
interest, and to permanently bar Taylor and Porter from serving as fiduciaries
to any plan covered by the Employee Retirement Income Security Act (ERISA). The
suit also seeks to have the court appoint an independent trustee to manage the
plan and to require that Porters individual plan account be used to
offset losses to the plan. |
The case was investigated by the Labor Departments Kansas
City Regional Office of the Pension and Welfare Benefits Administration, which
enforces federal pension law. The lawsuit was filed Dec. 11 in the federal
district court in Kansas City. |
(Herman v. Lynn Taylor, et al) Civil Action #
98-1289-CV-W-9 |
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 202.693.7755. |
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