|
|
|
Release Date: 05/08/2003
Release Number: 222
Contact Name: Gloria Della
Phone Number: 202.693.8664
|
Printer Friendly
Version
|
|
|
|
St. Paul, Minnesota - The U.S. Department of
Labor obtained a consent judgment and order on May 7, 2003, requiring an
executive of Argir.com Technology Solutions, Inc. in Woodbury, Minnesota
to restore $10,073.73 as restitution for failing to forward employee
contributions to the company’s 401(k) plan. |
|
The judgment also requires Frederic Argir to terminate
the plan and distribute the assets to plan participants, to file with the
federal government all required annual reports for plan years 2001 to 2003
and to be barred for three years from dealing with plans governed by the
Employee Retirement Income Security Act. (ERISA). |
|
“Our action today restores to the plan assets that
were improperly used to benefit the employer and makes assets available to
pay benefits owed to workers,” said Gregory Egan, director of the Kansas
City regional office of the department’s Employee Benefits Security
Administration (EBSA), which investigated the case. |
|
The lawsuit, filed on February 19, 2003 in federal
district court in St. Paul, alleged that Argir violated the ERISA by
failing to remit $9,242 in contributions withheld from employees’
paychecks from July 2001 to November 2001 and used the money to benefit
the company. Argir was the president and chief executive officer of the
company as well as a trustee of the plan. |
|
The department also filed an adversary complaint in
U.S. Bankruptcy Court in St. Paul to prevent Argir from discharging his
debts to the plan in bankruptcy proceedings. The company filed for Chapter
7 bankruptcy on May 7, 2002. Argir filed for personal bankruptcy on
September 13, 2002. |
|
The company, which ceased business operations on
October 15, 2001, provided computer consulting, networking, website
development and web hosting services. The plan had $18,427 in assets and
13 participants as of December 31, 2001. |
|
Egan noted that 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 make workers whole but
allows them to avoid EBSA enforcement actions and civil penalties as well
as any applicable excise taxes. For more information about the VFCP see
www.dol.gov/ebsa. |
|
Employers and workers can contact the 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. |
|
(Chao v. Frederic D. Argir)
Civil Action No. 03-1123 PAM/RLE
Adversary Complaint No.03-3052 |
|
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. |
