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Employee Benefits Security Administration

News Release

EBSA News Release: November 16, 2010
Contact Name: Rhonda Burke or Scott Allen
Email: burke.rhonda@dol.gov / allen.scott@dol.gov
Phone Number: 312-353-6976
Release Number: 10-1574-CHI

US Department of Labor sues Quality Tool and Machine Inc.
and president to restore more than $9,000 to SIMPLE IRA plan

SPARTA, Wis. – The U.S. Department of Labor has sued Quality Tool and Machine Inc. of Sparta and the company’s president, Jerry Freimuth, for allegedly failing to forward $9,672 in employee contributions to the company’s savings incentive match plan for employees individual retirement account, or SIMPLE IRA plan, in violation of the Employee Retirement Income Security Act.

The lawsuit, filed in the U.S. District Court in Madison, Wis., alleges Freimuth and the company failed to forward the voluntary employee contributions to the company’s SIMPLE IRA plan for the period of March 10, 2003, through Dec. 30, 2008.

“Our legal action underscores the Labor Department’s commitment to hold accountable those who are entrusted with the assets of workers’ retirement plans,” said Steve Haugen, regional director of the department’s Employee Benefits Security Administration in Chicago, Ill. “We will continue to help workers obtain their rightful benefits when plan fiduciaries violate the law.”

The suit seeks a court order to require repayment of losses with interest to the plan and to permanently bar Freimuth from serving as a fiduciary or service provider to any ERISA-covered employee benefit plan in the future.

This case is part of EBSA’s employee contribution project to safeguard workers’ contributions to 401(k) and health benefit plans. Employers and workers can reach EBSA’s Chicago Regional Office at 312-353-0900 or toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. Freimuth, Quality Tool and Machine Inc.

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U.S. Department of Labor releases are accessible on the Internet at http://www.dol.gov. 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 http://www.dol.gov/compliance.