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Charleston, West Virginia - The U.S. Labor Department has filed a lawsuit
against Richard Lewis, trustee of the profit sharing plan of Benefit Services
Inc., Charleston, West Virginia, to restore losses resulting from violations of
the Employee Retirement Income Security Act (ERISA).
The suit also seeks to permanently bar Lewis from serving as a fiduciary to
any ERISA-covered plan in the future.
The investigation conducted by the Washington district office of the Employee
Benefit Security Administration (EBSA) found that when Lewis, company owner and
plan trustee, sold Benefit Services in April 2000, he failed to distribute
account balances to former employees.
According to the Department of Labor, as of April 2000 the value of the plan
should have been calculated and all participants should have received their
benefits. In December 1999, the plan had nine participants and $224,249 in
assets.
By June 2002, the value of the plan had substantially declined; there were
little remaining assets; and not all participants had received their benefits.
The suit alleges that Lewis overpaid himself and a former employee and could not
account for additional withdrawals from the plan.
“The Department of Labor will aggressively enforce the law to protect the
retirement funds of this nation’s hardworking men and women,” says Mabel
Capolongo, regional administrator for employee benefits security.
In fiscal year 2004, EBSA achieved record monetary results of $3.1 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach EBSA’s
Philadelphia Regional Office at 215.861.5300 or through EBSA’s toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans.
(Chao v. Richard Lewis, Benefit Services Inc.)
Civil Action No. 2:05-0581
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