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Release Date: 06/26/01
Release
Number: III-01-06-026-060-VA
Contact Name: Gloria Della
Phone Number: 202.219.8921 |
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Washington, DC - The U.S. Department of
Labor filed suit on June 20 against trustees of the defunct IBIS Corporation of
Reston, Virginia, for failure to pay interest to the company’s 401(k) plan on
$20,895 in delinquent employee contributions and loan repayments. |
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IBIS Corporation, which terminated its operations
July 31, 1998, was in the business of computer system integration. The
corporation’s 401(k) plan covered about 30 participants and had $554,681
in assets at the end of 1996. |
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The lawsuit alleges that trustees Fred Molthen and
James M. Mooney violated their duties under the Employee Retirement Income
Security Act (ERISA) by failing to pay the interest due on delinquent
contributions. The department believes that the delinquent contributions and
loan repayments have now been repaid. |
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As relief, the lawsuit seeks a court order
requiring payment of the interest due on delinquent contributions. The lawsuit
also asks the court to remove the defendants as plan trustees and to appoint an
independent trustee to manage the plan’s affairs, including termination of
the plan and distribution of its assets to plan participants and
beneficiaries. |
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The lawsuit was filed in federal district court in
Alexandria, Virginia. The court action resulted from an investigation conducted by
the Washington, DC District Office of the department’s Pension and
Welfare Benefits Administration into alleged violations of ERISA. |
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“This action reaffirms our commitment to
protect the hard-earned benefits promised by employers,” said Mabel
Capolongo, Director of PWBA’s Philadelphia Regional Office.
“Employers and workers can reach us at 301.713.2000 for help with any
problems relating to private-sector pension and health plans.” |
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(Chao v. Molthen
Civil Action No.
01-972-A) |
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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. |
