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Release Date: 09/10/2004
Release Number: 04-1775-SAN
Contact Name: Deanne Amaden
Phone Number: 415.975.4741
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San Francisco, California - To protect the
401(k) contributions of employees of now-defunct Madsen Mechanical Inc. in
Ogden, Utah, the U.S. Department of Labor and the company’s former
president have reached an agreement that $24,821 in debt owed to the plan
cannot be discharged due to a bankruptcy filing. |
Sherry
L. Madsen, former president of the Ogden plumbing, heating and air
conditioning company, has agreed that she remains responsible for the
money owed to the company’s 401(k) profit sharing plan. The agreement
was entered into the U.S. Bankruptcy Court for the District of Utah,
Central Division. |
Madsen,
who also was a 401(k) trustee, admitted to the department’s allegations
that she did not forward at least $24,821 in employee contributions to the
plan between January and July of 2002, in violation of the Employee
Retirement Income Security Act. The company, which has since gone out of
business, deducted the funds from the paychecks of 29 employees. Madsen
filed for personal bankruptcy in March 2003. |
“This
sends a strong message to those responsible for employee benefit plans
that they cannot misuse their employees’ funds or have their personal
debts forgiven at the expense of the employees,” said R.C. Marshall,
acting regional director of the Labor Department’s Employee Benefits
Security Administration (EBSA) in San Francisco, which investigated the
case. |
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 with questions
or concerns regarding their private-sector pension and health plans can
contact the EBSA regional office in San Francisco at 415.975.4600 or EBSA’s
toll free number, 1.866.444.EBSA (3272). Information is also available
from the agency’s Web site at www.dol.gov/ebsa. |
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(Chao v. Madsen)
Civil Action No. 03-25231-JAB (Bankruptcy Court) |
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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