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Release Date: 07/12/2001
Release Number: V-435
Contact Name: Sharon Morrissey
Phone Number: 202.219.8921
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Chicago, Illinois - The U.S. Department of Labor
filed an adversary complaint on July 11 to prevent the owner of Sure-Tite
Roofing, Inc. of Chippewa Falls, Wisconsin from discharging debts owed to
the company’s profit sharing plan in his Chapter 7 bankruptcy
proceeding. |
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The bankruptcy filing alleges that Robert Louis
Starkmann, the owner of Sure-Tite and a trustee of the profit sharing
plan, diverted $5,031.61 in employees' contributions to pay the general
operating expenses of the company. The bankruptcy filing further alleges
that Starkmann, who filed for personal bankruptcy on March 28, failed to
timely remit $7,618.77 in employee contributions to the plan. The
department also filed a lawsuit in federal district court in the Western
District of Wisconsin on July 9 against Starkmann and the company for
diverting the plan assets to pay corporate expenses and failing to secure
a fidelity bond as required by federal pension law. |
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The civil lawsuit seeks to have the court permanently
bar Sure-Tite and Starkmann from serving as fiduciaries to ERISA-covered
plans, to prevent them from committing future violations of the federal
pension law, to secure a fidelity bond and to offset Starkmann’s own
account for the amount he owes the plan’s other participants because of
his fiduciary breaches. |
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Sure-Tite, a Subchapter S corporation, employed 12
people until October 2000 when they were terminated because of the
company’s financial problems. Since then, Sure-Tite has ceased all
operations. The company’s plan had 10 participants and $16,146.62 in
assets as of December 31, 2000. |
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The Chicago Regional Office of the department’s
Pension and Welfare Benefits Administration conducted the investigation
leading to the lawsuit. |
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(Chao v. Sure-Tite Roofing, Inc., and Robert Louis
Starkmann
Civil Action No. 01 C 0391S)
(Chao v. Robert Louis Starkmann in U.S. Bankruptcy Court
Civil Action No. N. 01-11623-7 Chapter 7) |
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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. |
