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Release Date: December 10, 2008
Release Number: 08-1794-CHI
Contact Name: Scott Allen or Brad Mitchell
Phone Number: 312.353.6976
Traverse City, Michigan – The U.S.
Department of Labor has sued the president and fiduciary of the 401(k)
plan of Emergency Consultants Inc., Traverse City, for failing to
forward contributions to the plan as soon as reasonably feasible, in
violation of the Employee Retirement Income Security Act (ERISA).
The department’s lawsuit alleges that from January
2003 through June 2004, Dr. James Johnson, president and 401(k) plan
fiduciary of the company, did not remit participant contributions to the
plan as soon as he could. The department seeks to recover lost
opportunity costs owed to the 401(k) accounts and to require that Dr.
Johnson make good any losses resulting from his fiduciary breaches.
“The Labor Department will aggressively pursue
individuals who misuse plan assets and will be diligent in recovering
losses owed to American workers,” said Paul Baumann, acting director
of the department’s Cincinnati Regional Office of the Employee
Benefits Security Administration (EBSA), which investigated the case.
The suit, filed in federal district court in Grand
Rapids, Michigan, resulted from an investigation conducted by the
Detroit district of EBSA’s Cincinnati Regional Office. Employers and
workers can reach the Cincinnati office at 859.578.4680 or through
EBSA’s toll-free number, 866.444.3272, for help with problems relating
to private sector retirement and health plans.
In fiscal year 2007, EBSA achieved monetary results
of $1.5 billion related to pension, 401(k), health and other benefits
for millions of American workers and their families.
Chao v. James Johnson M.D.
Civil Action Number 1:08-cv-1126
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 (large print, Braille, audio tape or
disc) from the COAST office upon request. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department 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.
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