EBSA News Release: January 19, 2011
Contact Name: Scott Allen or Rhonda Burke
Phone Number: 312-353-6976
Email: Allen.Scott@dol.gov / Burke.Rhonda@dol.gov
Release Number: 11-54-CHI
US Labor Department sues Janesville, Wis.-based Premier Vending Inc. and
president to recover more than $26,000 in employee 401(k) contributions
JANESVILLE, Wis. – The U.S. Department of
Labor has sued Premier Vending Inc. of Janesville and its president and
co-owner, David R. Biggerstaff, to restore $26,163.50 to the company’s
401(k) plan in voluntary employee contributions, plus lost interest. The
case resulted from an investigation by the Labor Department’s Employee
Benefits Security Administration into alleged violations of the Employee
Retirement Income Security Act.
“It is an egregious violation of trust when
employees’ voluntary salary contributions are incorporated into the
general assets of the company and not forwarded to their retirement
plans,” said Steve Haugen, EBSA’s regional director in Chicago, Ill.
“The Labor Department will continue to help workers obtain their
rightful benefits when fiduciaries fail in their responsibilities to
properly administer employee benefit plans.”
The lawsuit, filed in U.S. district court in Madison,
Wis., alleges that the company and Biggerstaff violated ERISA by failing
to forward the employee contributions to the plan from Oct. 26, 2007,
through Jan. 30, 2009. Those funds were retained in Premier Vending’s
general account and used to pay the company’s operating expenses. In
addition, the defendants failed to timely remit employee contributions
to the plan from Sept. 1, 2006, through Jan. 30, 2009. The suit seeks a
court order to restore money owed to the plan and to prevent Biggerstaff
from serving as a fiduciary to any ERISA-covered employee benefit plan
in the future.
Currently, the plan has approximately nine
participants and $181,742 in assets.
The investigation was conducted by the EBSA’s
Chicago Regional Office. Employers and workers can reach the agency’s
Chicago office at 312-816-0503 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. Biggerstaff, Premier Vending Inc.
Civil Action Number: 3:11-cv-00031
# # #
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