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Release Date: 08/16/2004
Release Number: 04-1575-CHI
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Indianapolis, Indiana - The U.S. Department of Labor has sued Ventura Technology International
Inc. of Indianapolis, Indiana, and its owner for failing to properly remit
employee contributions to the corporation’s 401(k) plan and segregate
those contributions from its general assets. The suit also alleges that
the plan participants and beneficiaries were left without a fiduciary to
distribute the retirement plan assets.
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“Plan
fiduciaries have a responsibility to protect plan assets, including making
sure there is someone managing the plan,” said Joseph Menez, director of
the Cincinnati regional office of the department’s Employee Benefits
Security Administration (EBSA), which investigated the case. |
The
suit, filed in federal district court in Indianapolis, alleges that
Ventura Technology International Inc. and Barbara Baker, the owner and
plan trustee, failed to timely remit contributions to the plan from January
31, 2002, to March 18, 2002, remit employee contributions to the plan from
March 19, 2002 to June 2002, and commingled the contributions with the
company’s general assets in violation of the Employee Retirement Income
Security Act (ERISA). Baker also abandoned the plan and failed to
distribute its assets to participants and beneficiaries and to properly
terminate the 401(k). |
Plans
become orphan plans when they are abandoned by all fiduciaries designated
to manage and operate them and their assets, leaving participants and
beneficiaries without a way to obtain distributions from their plan
account. |
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The suit seeks to
require Baker to restore all losses plus interest to the plan, correct the
prohibited transactions, and offset her individual account with the amount
of the plan’s losses. It also seeks to remove Baker as the trustee,
permanently bar her from serving as a fiduciary to any employee benefit
plan covered by ERISA, and appoint an independent fiduciary to distribute
the plan’s assets to participants and beneficiaries and terminate the
plan.
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Ventura
Technology International, Inc., provided information technology consulting
services. It ceased doing business in August 2002. The plan provided
retirement, death, disability and termination benefits for Ventura
employees. There were eight participants and $26,496 in assets as of April
2004. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach the
Cincinnati regional office at 859.578.4680 or through EBSA’s toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
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(Chao v. Baker)
Civil Action No. 1:04-cv-01292
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U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |
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