EBSA News Brief
Office of Public Affairs Philadelphia PA
For Immediate Release: July 11, 2013
Contact: Joanna Hawkins or Leni Uddyback-Forston
Phone: 215-861-5101 or 215-861-5102
E-mail: email@example.com or firstname.lastname@example.org
Release Number: EBSA 13-058
Harris v. Innovative Logistics Techniques Inc., et al.
Consent judgment entered against Fairfax, Va., company to protect workers’ 401(k) assets
Date of Action: July 11, 2013
Name(s) of Defendant(s): Innovative Logistics Techniques Inc.
Allegations: In 1989, Innovative Logistics Techniques Inc., a Fairfax, Va.-based company, established a 401(k) plan for its employees. An investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration found that the company failed to remit employee contributions to the plan from 2007 through 2011. Further, between December 2010 and March 2011, the company authorized the transfer of funds from the plan’s forfeiture account to pay fees for services that were unrelated to the provision of benefits under the plan, but rather were for the benefit of Innovative and its parent company, Innolog Holdings Corp.
Resolution: A consent judgment has been entered by the U.S. District Court for the Eastern District of Virginia against Innovative Logistics Techniques Inc. requiring $133,568.07 be restored to the Innovative Techniques Logistics Inc. 401(k) plan and trust. Upon receiving proof of restitution payment, the Acting Secretary shall assess a penalty against Innovative in the amount of $26,713.61. The defendant is permanently enjoined from serving as trustee, fiduciary, advisor, or administrator to any plan governed by the Employee Retirement Income Security Act and is removed as plan administrator. A court-appointed, independent fiduciary will have plenary authority over plan administration, management and disposition of plan assets, including the termination of the plan. Innovative and the plan shall provide full cooperation to the independent fiduciary in the performance of its duties which include terminating the 401(k) plan and distributing any remaining plan assets in accordance with the plan documents.
Court: United States District Court for the Eastern District of Virginia
Docket Number: 1:12-cv-01321
U.S. Department of Labor materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.