|
|
|
Release Date: 05/30/2002
Release Number: 228
Contact Name: Gloria Della
Phone Number: 202.693.8666
|
Printer
Friendly Version
|
|
|
|
Cincinnati, Ohio
- The U.S. Department of Labor obtained a
consent order and judgment on May 24, 2002, restoring $15,179.46 in profit
sharing plan assets from the account of the former owner of Great Lakes Color
Printers, Inc. in Oak Park, Michigan, to the remaining plan participants. |
|
“This action reaffirms our commitment to protect the
hard-earned benefits promised by employers,” said Joseph Menez, Director of
the Cincinnati regional office of the Pension and Welfare Benefits
Administration (PWBA). |
|
Assets from the account of now-deceased Jihad Moukalled,
the company’s former owner, will be distributed to other participants as
restitution for failure to deposit pension contributions withheld from employees
into the plan. The judgment also appoints Larry Lefoldt as the independent
fiduciary of the profit sharing plan, with authority to manage plan assets,
terminate the plan and distribute its assets to participants. |
|
A suit filed on April 1, 2002 alleged Moukalled retained
pension contributions of employees in the company’s general assets for the
period March 20, 1998 to November 22, 2000. The suit named National City Bank
of Michigan/Illinois, the personal representative of the estate of Moukalled, in
order to obtain relief for the plan and its participants. |
|
The profit sharing plan covered 23 participants and
had $297,005 in assets as of December 31, 1999. |
|
Menez said the department's Voluntary Fiduciary Correction
Program (VFCP) allows plans to correct failures in forwarding contributions
withheld from employees’ paychecks and certain other ERISA violations.
Eligible applicants who properly correct transactions under the program will not
be subject to the enforcement action and will not be liable for civil penalties.
Excise tax liability under the Internal Revenue Code is also eliminated for
certain transactions. |
|
This suit was filed in federal district court in Detroit,
Michigan, following an investigation by the Cincinnati regional office of
PWBA.
Employers and workers can contact the regional office at 859.578.4680 or
PWBA’s Toll-Free Employee & Employer Hotline number, 1.866.275.7922, for help with problems relating to
private-sector pension and health plans. |
|
(Chao v. National City Bank of Michigan/Illinois
Civil Action No. 02-71261) |
|
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. |
