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Release Date: 03/17/2005
Release Number: 05-388-SEA (05-33)
Contact Name: Michael Shimizu
Phone Number: 206.553.7620
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Portland, Oregon - The Department of Labor has
obtained a consent judgment restoring nearly $48,000 to the 401(k) profit
sharing plan of now-closed Moore Communications, Beaverton, Oregon. |
According
to Francis Clisham, regional director of the department’s Employee
Benefits Security Administration (EBSA) office in San Francisco, “This
case sends a strong message that those responsible for employee benefit
plans cannot use plan assets to pay corporate debts or in any way misuse
employee retirement funds.” |
Under
the judgment, Sidney E. and Jeanette Moore are permanently barred from
future service to any plan governed by the Employee Retirement Income
Security Act and must restore $47,996 to the plan, funds they commingled
with the company’s general assets to pay corporate obligations. The
court also appointed an independent fiduciary to manage the plan. |
On
March 3, the Labor Department sued the Moores for failure to forward
$39,581 in employee contributions to the plan between December 29, 2000,
and September 6, 2002. The suit also asked for $6,869 in lost opportunity
costs on the delinquent employee contributions. The couple are founders
and former owners of the company as well as fiduciaries of the company’s
401(k) plan. |
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In an earlier legal action, the department filed an
adversary complaint in the U.S. Bankruptcy Court to prevent the Moores
from discharging debts owed to the plan in bankruptcy proceedings. On
March 8, the bankruptcy court entered a judgment determining the Moores
could not discharge their plan debt. |
Moore
Communications, which closed its doors on June 1, 2003, was sold to
Accolade Technologies Inc. The company, which specialized in sales,
service and repairs of telecommunications products, sponsored the plan for
12 employees before it was sold. |
Employers
with similar problems, who are not yet the subject of an investigation by
EBSA, may be eligible to participate in the department's Voluntary
Fiduciary Correction Program (VFCP). Participation in the VFCP requires
employers to correct ERISA violations but allows them to avoid EBSA
enforcement actions, civil penalties and any applicable excise taxes. For
more information see www.dol.gov/ebsa. |
The
Seattle district office of EBSA investigated the case. In fiscal year
2004, EBSA achieved record monetary results of $3.1 billion related to the
pension, 401(k), health and other benefits of 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 District Office in Seattle at 206.553.4246 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. Moore)
Civil Action No. 3:05-cv-00304-AS
U.S. Bankruptcy Court for the District of Oregon at Portland |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. 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
www.dol.gov/compliance. |
