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Release Date: 03/17/2003
Release Number: 163
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Minneapolis, Minnesota - The president of Double A Electric, Inc. of Alexandria,
Minnesota, agreed to repay $8,937.27 to the company’s SIMPLE IRA plan for failure
to forward employee contributions, according to a consent order and judgment
obtained by the U.S. Department of Labor on March 17. |
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Loren Koenen also waived his rights to the non-remitted contributions and to
any proceeds in the company’s bankruptcy proceedings. |
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“This action demonstrates our continuing commitment to protect the
hard-earned benefits of American workers,” said Gregory Egan, director of the
department’s Kansas City Regional Office of the Employee Benefits Security
Administration (EBSA), which investigated the violations of the Employee
Retirement Income Security Act (ERISA). |
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The department’s complaint, filed August 12, 2002 in federal district court
in Minneapolis, alleged that Koenen failed to forward to the plan contributions
withheld from employees’ paychecks from January 2000 to November 2000, using
the money to benefit the company. |
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The company filed for Chapter 7 bankruptcy protection March 27, 2001 in the
U.S. Bankruptcy Court for the District of Minnesota in Fergus Falls, Minnesota. There
were 17 participants in the plan. The department filed a proof of claim on
December
17, 2001 in the federal bankruptcy court for $10,517, including lost interest,
against the company. |
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Egan noted that employers with similar problems, who are not yet the subject
of an investigation by EBSA, could be eligible to participate in the Department’s
Voluntary Fiduciary Correction Program. Participation in the VFCP requires
employers to make workers whole, but allows them to avoid EBSA enforcement
actions and civil penalties, as well as excise taxes. For more information about
the VFCP see www.dol.gov/ebsa . |
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Employers and workers can contact the Kansas City Regional Office at
816.426.5131 or EBSA’s toll free number, 1.866.444.EBSA (3272), for help
with problems relating to private-sector pension and health plans. |
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(Chao v. Loren Koenen)
Civil Action No. 02-CV-2899 |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
