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Release Date: 04/18/2001
Release
Number: 01-62
Contact Name: Michael Shimizu
Phone Number: 206.553.7620 |
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Los Angeles, California - The U.S. Department of Labor filed
suit April 4, 2001, in the U.S. District Court for the Central District of
California against Uni Prise Systems, Inc., a California corporation; Robert
Mowry, Uni Prise’s former chief executive officer and majority shareholder
of Uni Prise; and Joseph Perry, Uni Prise’s former director/president, for
violations of the Employee Retirement Income Security Act of 1974
(ERISA). |
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According to Billy Beaver, Los Angeles regional
director for the Pension and Welfare Benefits Administration (PWBA), the
alleged violations of ERISA occurred when Uni Prise, Mowry, and Perry failed to
forward contributions withheld from employee paychecks to the plan. |
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Uni Prise Systems, Inc., Retirement Savings Plan,
an employee benefit plan, was named as a defendant in the suit as an
indispensable party for total relief, he added. |
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The department’s complaint alleges that Mowry
exercised the ultimate authority in deciding whether employee contributions
were forwarded to the plan or used to pay other Uni Prise business expenses.
Mowry was also an individual acting on behalf of Uni Prise as the plan
administrator. |
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The department’s complaint also alleges that
Perry ran the daily operations of the Uni Prise and had the authority to decide
whether employee contributions were forwarded to the plan or used to pay other
Uni Prise expenses. Perry was also an individual acting on behalf of Uni Prise
as the plan administrator. |
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The plan is a defined contribution plan, providing
for employee contributions only. Employee contributions were to be forwarded to
Principal Financial Group. |
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The department alleges that from April 1, 1998,
through May 21, 1998, employee contributions totaling $12,349 were not
forwarded to Principal Financial Group. |
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The suit asks the court to require the defendants
to restore all losses suffered by the plan, including lost interest and lost
opportunity costs; to require the plan to set off Perry’s individual plan
account against the losses caused by the alleged misconduct; to remove Mowry
and Perry as fiduciaries of the plan; to appoint an independent fiduciary to
make distributions to the plan’s participants; to require Uni Prise, Mowry
and Perry to pay for all costs associated with the appointment and retention of
the independent fiduciary; and to bar Uni Prise, Mowry and Perry permanently
from serving as fiduciaries of or service providers to any employee benefit
plan covered by Title I of ERISA. |
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This court action was a result of an investigation
conducted by the Los Angeles Regional Office of PWBA, headed by Beaver. It is
part of an ongoing initiative to insure compliance with ERISA fiduciary
standards with respect to timely deposit of employees’ contributions to
401(k) plans. |
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Beaver said, “This case exemplifies our
commitment to protect the hard-earned benefits of workers. Workers can help us
protect their plan benefits by contacting our office at
626.583.7862 if they
have questions or suspect abuse of their pension, health or other benefit
plans.” |
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(Chao v. Robert Mowry, et al.
Civil Action File No.
01cv00378) |
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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 202.693.7775. |
