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Release Date: January 22, 2007
Release Number: 07-51-SAN (SF-5)
Contact Name: Deanne Amaden
Phone Number: 415.975.4741
San Francisco - The U.S. Department of Labor
has reached a settlement with the Corona web design firm of WesTech
Solutions Corp. and its president, Donald Cantral, to restore $14,883
owed to the company’s 401(k) plan.
The agreement settles a lawsuit filed by the
department in which the restored assets will be allocated to the 20
former WesTech employees covered by the 401(k) plan.
The suit removes Cantral as a plan trustee and
requires him to enroll in and pay for a five-year fiduciary training
program approved by the Labor Department’s Employee Benefits Security
Administration (EBSA) as a prerequisite to service as a plan fiduciary
in the future. He must also cooperate with the independent fiduciary to
distribute the restored funds and to pay the independent fiduciary’s
expenses. In addition, Cantral must pay a civil money penalty equal to
20 percent of the funds owed to the plan.
“The law clearly requires those who administer
employee benefit plans to do so in a careful, prudent and honest manner
solely for the benefit of participants,” EBSA Los Angeles regional
director Billy Beaver said. “Situations like this where promised
benefits are never paid while employees' contributions continue to be
collected are totally unacceptable.”
The Labor Department suit, filed in March 2005 in
federal district court for the Central District of California-Eastern
Division, alleged that Cantral and WesTech Solutions failed to remit
employee contributions to the company’s 401(k) plan.
WesTech Solutions built and designed web-based
computer system applications. The company was based in Riverside County
but suspended operations in September 2002.
The department’s suit resulted from an
investigation conducted by EBSA’s Los Angeles regional office. In
fiscal year 2006, EBSA achieved monetary results of $1.4 billion related
to pension, 401(k), health and other benefits for millions of American
workers and their families.
Employers and workers with questions or concerns
regarding their private-sector pension and health plans can contact the
EBSA regional office in Los Angeles at 626.229.1000 or EBSA’s toll
free number, 1.866.444.EBSA (3272). Information is also available from
the agency’s Web site at www.dol.gov/ebsa.
(Chao v. WesTech Solutions Corp.)
Civil Action No. EDCV05 – 0198-SGL
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