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Release Date: 01/20/2000 Release Number:
00-14 Contact Name: Sharon Morrissey Phone Number: 202)
219-8921 |
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The U.S. Department of Labor has settled its
lawsuit with Georgian Art Lighting Designs, Inc., of Lawrenceville, Ga. and its
owner for failing to deposit employee contributions into the companys
401(k) pension and medical plan accounts. |
Company chairman Lyonel M. Joffre was ordered to
pay the 401(k) plan $30,022.02, including interest, within 30 days from the
filing of this consent order, and also was directed by the court to reimburse
plan participant Charles Shadburn and several service providers specific
amounts outlined in the consent order/settlement. Joffre will be allowed to
negotiate with the service providers to reduce the amounts owed and must affirm
to participant Shadburn that the service providers will seek no further payment
from him. |
According to the settlement, all other healthcare
claims against the health plan have been satisfied. Finally, Joffre was barred
permanently from serving the companys plans and also was barred for five
years from serving in any capacity for compensation or otherwise
to any employee benefit plan subject to the Employee Retirement Income Security
Act (ERISA). |
Georgian Art Lighting, which manufactures
decorative lighting fixtures, filed for Chapter 11 bankruptcy in 1997. The
company sponsored a self-funded health plan and 401(k) plan for some 85
participants and both plans were funded through weekly deductions from
employees paychecks. The retirement plan had assets of $758,191 at the
end of 1995. |
According to the lawsuit, the company and Joffre
violated ERISA when they failed to deposit employee contributions into trusts
for the health and 401(k) plans. The defendants allegedly allowed $26,133 of
contributions owed to the health plan to be used for the companys benefit
by commingling the contributions with general assets of the company starting in
August 1996. The departments suit also alleged that they improperly
failed to remit $22,855.50 in contributions withheld from the employees
paychecks to the 401(k) plan from May to October 1996. |
Our goal is to assure that consumers know
that the department is only a phone call away to help protect the benefits
promised by employers, said Howard Marsh, director of the Labor
Departments Atlanta Regional Office of the Pension and Welfare Benefits
Administration. Employers and workers can reach us at (404) 562-2156 in
Atlanta for help with any problems relating to private-sector pension and
health plans. |
The consent order/settlement, the result of an
investigation conducted by PWBAs Atlanta Regional Office which enforces
ERISA, was entered January 19, 2000 in federal district court in
Atlanta. |
(Herman v. Georgian Art Lighting Design, Inc.)
Civil Action # 1:99-CB-2535 |
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 202.693.7775. |
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