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Release Date: 04/01/2005
Release Number: 05-450-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
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Detroit, Michigan - The U.S. Department of Labor
has filed suit to restore unremitted contributions made to a 401(k) plan
by employees of a Monroe, Michigan, firm. The suit, filed against Fox
Berry Inc., as successor to Foxberry Group Inc., Thomas L. Fox, president
of both companies, and the Foxberry Group Inc.'s 401(k) plan alleges that
Fox and Fox Berry, Inc. failed to forward employee contributions to the
company’s pension plan; failed to segregate the plan contributions from
the company’s general operating assets; and placed vested account
balances of 11 former employees into a forfeiture account. |
“The
department will act when plan fiduciaries fail to carry out their duty to
protect the retirement plan assets held on behalf of participants,” said
Joseph Menez, director of the department’s Cincinnati regional office of
the Employee Benefits Security Administration (EBSA). |
The
lawsuit alleges that Fox failed to remit employee contributions to the
401(k) plan from January 2000 through December 2002. The suit further
alleges that Fox transferred assets from one custodian of the plan to
another in 2000. The vested account balances of former employees were held
in a forfeiture account. In 2003, the suit charges, Fox instructed the
plan custodian to liquidate the plan, convert the forfeiture account to
cash and remit the cash to Foxberry Group. The funds were then transferred
to Fox Berry and used for general operating expenses in violation of the
Employee Retirement Income Security Act. |
The
suit seeks to require Fox and the company to restore to the plan all
contributions plus interest, remove Fox as a plan fiduciary, and correct
any prohibited transactions. The Labor Department also asks that the court
appoint an independent fiduciary to oversee the plan. |
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The suit, filed in federal district court in Michigan,
resulted from an investigation conducted by the Detroit district office of
EBSA’s Cincinnati regional office. Employers and workers can reach the
Cincinnati regional office at 859.578.4680 or through EBSA’s toll-free
number, 1.866.444.EBSA (3272) for help with problems relating to
private-sector retirement and health plans. 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. |
(Chao
v. Fox Berry, Inc.)
Civil Action No. 05-70926 |
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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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