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The U. S. Department of Labor has obtained
a consent judgment requiring the president of Jan-San Supply Company of
Decatur, Ill., to guarantee repayment of $45,000 owed to the plan as
restitution for violations committed in his capacity as a trustee of the
company’s 401(k) plan.
Under the judgment, James Lambert will personally
guarantee payment of the outstanding employee contributions and lost interest
owed by the company. Jan-San was approved on Jan. 6, 1999 for bankruptcy
reorganization by the United States Bankruptcy Court.
The lawsuit filed simultaneously with the judgment
on May 5 alleges that Lambert violated the Employee Retirement Income Security
Act. He allegedly allowed Jan-San to retain voluntary employee contributions
withheld from employee paychecks and failed to promptly remit the money to the
plan’s investment accounts.
Jan-San Supply Company sells cleaning supplies and
provides contracted cleaning services. The plan — which provides
retirement, disability and death benefits — covered 45 participants and
had $336,170 in assets at the end of 1996. The plan provides for voluntary
employee contributions.
The consent order was entered in federal district
court in Urbana, Ill. The court action resulted from an investigation by the
St. Louis District Office of the department’s Pension and Welfare Benefits
Administration into alleged violations of ERISA.
Herman v. James Lambert
Civil Action No.
99-2093 |
