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Release Date: 09/02/2004
Release Number: 04-1572-SAN
Contact Name: Rita D. Ford
Phone Number: 202.693.8671
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Phoenix, Arizona - The U.S. Department of Labor
sued DMT Engineering, Inc. and Ductmole Inc., both of Phoenix, Arizona,
and the companies’ chief executive officer for failing to timely remit
employee contributions to Ductmole Inc.’s Simple IRA plan and to
segregate the contributions from the general operating assets of the
companies. |
“The
department will act when plan fiduciaries fail to carry out their duty to
protect the retirement plan assets held on behalf of participants,” said
Billy Beaver, director of the department’s Los Angeles regional office
of the Employee Benefits Security Administration (EBSA), which
investigated the case. |
The
lawsuit, filed in federal district court in Phoenix, alleges that the
companies and CEO Saul Trevizo violated the Employee Retirement Income
Security Act (ERISA) when they failed to timely remit to the plan $12,779
in employee contributions from August 2000 to July 2001 and commingled the
contributions with the companies’ general operating assets. |
Trevizo
is the fiduciary of Ductmole’s SIMPLE IRA plan. Trevizo’s spouse,
Mirna, also is named as a defendant to ensure that the plan is fully
compensated since their assets are held as community property. |
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The suit seeks to require DMT Engineering, Ductmole and
Saul Trevizo to restore to the plan all losses plus interest and correct
the prohibited transactions, appoint an independent fiduciary to
distribute the assets to participants and beneficiaries and terminate the
plan and permanently bar DMT Engineering, Ductmole and Trevizo from
serving as fiduciaries to any plan covered by ERISA. As of February 2002,
Trevizo had restored $1,500 to the plan. |
DMT
Engineering and Ductmole were contracting businesses that installed
underground fiber optics and cables. DMT Engineering ceased doing business
in 2003. Ductmole ceased doing business when DMT purchased its assets in
2001. The plan, which DMT Engineering acquired after Ductmole’s closure,
had eight participants and $6,502 in assets as of March 2004. |
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 allows them to avoid EBSA enforcement
actions and civil penalties as well as any applicable excise taxes. For
more information about the VFCP, see www.dol.gov/ebsa. |
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
Los Angeles regional office at 626.229.1000 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. DMT Engineering, Inc.)
Civil Action No. CV-04 1599 PHX FJM |
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. |
