Archived News Release Caution: Information may be out of date.
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Release Date: 06/04/2004
Release Number: 04-978-DAL
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Dallas, Texas - The U.S. Department of Labor has
sued Mallscapes Inc. of Dallas and its owner for failing to timely remit
and forward to the corporation’s SIMPLE IRA plan contributions withheld
from employees’ paychecks. |
“This
action demonstrates our commitment to protect the hard-earned benefits of
American workers,” said Steve Eischen, director of the department’s
Dallas regional office of the Employee Benefits Security Administration (EBSA),
which investigated the case. |
The
suit, filed in the federal district court in Dallas, alleges that
Mallscapes Inc. and John D. Rowland III failed to either timely remit or
forward contributions to the plan from 1999 to 2001, and used the money to
benefit the corporation, in violation of the Employee Retirement Income
Security Act (ERISA). Rowland is the company’s owner and plan fiduciary. |
The
suit seeks to require Mallscapes and Rowland to restore all losses to the
plan with interest, offset any personal benefits from the plan against the
losses, and permanently bar Rowland from serving as a fiduciary to any
employee benefit plan governed by ERISA. |
Mallscapes Inc., established in 1986, is a commercial
landscaping business that designs and maintains landscaping at retail
malls and other larger establishments. It has operated in Texas, Oklahoma,
Arizona, Nevada, California, Kansas, Missouri, Louisiana and Florida. The
plan had 14 participants, as of March 2001, and assets totaling $7,726, as
of December 2001. |
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. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach
EBSA’s Dallas regional office at 214.767.6831 or through its toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao
v. Mallscapes, Inc.)
Civil Action No. 304-CV-183-M |
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. |
Archived News Release Caution: Information may be out of date.
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