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Release Date: March 14, 2006
Release Number: 06-447-BOS/BOS 2006-065
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Boston, Massachusetts - The U.S. Department of
Labor has sued the president of now-defunct One Source Computer
Corporation, Framingham, Massachusetts, seeking restoration of funds to
the company’s 401(k) plan.
The lawsuit was filed in the U.S. District Court for
the District of Massachusetts against Minh Q. Nguyen, sole trustee of
the plan; One Source Computer Corporation, plan sponsor; and One Source
Computer Corporation 401(k) Plan. The plan was established January 1,
1999, to provide retirement and death benefits for employees of the
company.
The Labor Department’s suit alleges that, on
November 14, 2002, Nguyen instructed the custodian of the plan’s
assets to liquidate and transfer them to his personal bank account. Of
the $38,234.85 transferred, a total of $28,647.18 represented benefits
for eight other plan participants. Between November 14 and November 22,
2002, Nguyen depleted the entire amount in his personal bank account
without making any distributions to the eight additional plan
participants.
Said James Benages, Boston regional director for the
department’s Employee Benefits Security Administration (EBSA), “It
is totally unacceptable for the trustee of an employee benefit plan to
use the assets of the plan for his or her own private purposes. Such
action is a clear violation of federal retirement law, and the filing of
this lawsuit demonstrates that we will not hesitate to resort to
litigation to ensure that plan participants receive the benefits to
which they are entitled.”
The department’s suit asks the court to permanently
bar Nguyen from serving as a fiduciary to any employee benefit plan
covered by the Employee Retirement Income Security Act. The suit also
asks the former plan trustee to undo his prohibited transactions and
restore all plan losses including interest resulting from his improper
actions.
The Labor Department’s legal action resulted from
an investigation conducted by EBSA’s Boston regional office. In fiscal
year 2005, EBSA achieved monetary results of $1.7 billion related to
pension, 401(k), health and other benefits for millions of American
workers and their families. Employers and workers can contact the Boston
regional office at 617.565.9600 or EBSA’s toll-free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
pension and health plans. Additional information can be found at
www.dol.gov/ebsa.
(Chao v Minh Q. Nguyen, et al)
Civil Action Number: 06-CA-10427-RGS)
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor 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 the
Department's Compliance
Assistance page.
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