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Release Date: 06/11/2003
Release Number: 260
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Chicago, Illinois - The U.S. Department of Labor
obtained a consent order and judgment on May 23, 2003, requiring Cross
Ambulance Service, Inc. of West Allis, Wisconsin and the administrator of
its Simple IRA plan to restore $14,563 to the plan, distribute the plan
assets to participants, and terminate the plan for failure to forward
contributions withheld from employees’ wages to the plan. |
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The judgment also requires Robert Blahut to waive his
benefits under the plan to repay the losses of other plan participants if
the company fails to fully reimburse the plan. In addition, the judgment
permanently bars Blahut from serving in positions of trust to any plan
governed by the Employee Retirement Income Security Act (ERISA), requires
the company to maintain corporate assets as collateral to secure payment
and obtain written agreements from financial institutions holding security
interests in the company to waive their claims. |
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“This action underscores the Labor Department’s
commitment to hold accountable those who are entrusted with the assets of
retirement plans on behalf of workers,” said Kenneth Bazar, director of
the Chicago regional office of the Employee Benefits Security
Administration (EBSA). |
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The court action resulted from an investigation
conducted by the department’s Chicago regional office alleging that
Cross Ambulance violated ERISA by failing to remit employee participant
contributions withheld from employees’ paychecks from August 2000 to
December 2001 and fund employer matching contributions for the same
period. The judgment was entered in federal district court in Milwaukee,
Wisconsin. |
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Cross Ambulance provides handicap van transportation
and emergency medical ambulance services. It established the Simple IRA
plan in January 2000, which had approximately 21 active participants as of
December 2001. |
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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
allow them to avoid EBSA enforcement actions, civil penalties and
applicable excise taxes. For more information see www.dol.gov/ebsa. |
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Employers and workers can reach EBSA’s Chicago
regional office at 312.353.0900 or through its toll-free number, 1.866.444.EBSA
(3272), for help with problems relating to private-sector pension and
health plans. |
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(Chao v. Cross Ambulance Service)
Civil Action No. 03-C-0487 |
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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 202.693.7755. |
