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Release Date: Release Number:
00-03-29-025-VA Contact Name: Gloria Della Phone Number:
202.219.8921 |
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The U. S. Department of Labor has sued the former
officers of bankrupt Artech Corp. of Chantilly, Va., for failing to transmit
employee contributions to the companys profit sharing plan and diverting
plan assets to pay corporate expenses. |
Artech Corp. was an engineering firm for testing
materials which ceased operations in 1996. The company sponsored the profit
sharing plan for 52 participants and had approximately $150,000 in assets as of
June 30, 1998. The plan allows employees to make voluntary contributions to the
plan. |
Named as defendants are Paul Lare, Fred Ordway,
and Waltraud Jackson. At various times, these individuals both officers of
Artech Corp. and trustees of the plan. |
According to the lawsuit, the defendants Lare and
Jackson violated their duties as fiduciaries under the Employee Retirement
Income Security Act (ERISA) by:
failing to remit employee contributions
to the plan in a timely manner and commingling plan assets with
corporate money and diverting plan money to pay corporate expenses
Ordway allegedly failed to take steps
to remedy the improper actions of the other trustees. |
The lawsuit seeks a court order requiring that the
defendants restore to the plan all losses with interest and that assets
restored to the plan be allocated to the accounts of all participants except
the defendants. The department also asks the court to require current trustees
Lare and Ordway to terminate the plan after the funds are restored and
permanently bars all defendants from serving in positions of trust to any plan
governed by ERISA. |
Mabel Capolongo, Director of the Philadelphia
Regional Office of the Pension and Welfare Benefits Administration (PWBA),
said, This case exemplifies our commitment to protect the hard-earned
benefits of workers. Workers can help us protect their plan benefits by
contacting our office at 215-596-1134 if they have questions or suspect
abuse of their pension, health or other benefit plans. |
This case was investigated by the Philadelphia
Regional Office of the departments Pension and Welfare Benefits
Administration into alleged violations of ERISA. The lawsuit was filed on March
28 in federal district court in Alexandria, VA. |
(Herman v. Lare) Civil Action No.00-522-A
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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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