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Release Date: September 18, 2006
Release Number: 06-1055-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
Columbus, Ohio - The U.S. Department of Labor
has sued Team America Corporation, Columbus, Ohio and three individuals
who served as fiduciaries to the company’s retirement savings, health
and disability programs for failing to forward employee and employer
contributions to the plans and to segregate plan contributions from the
general operating assets of the company.
The lawsuit alleges that Steven Cash Nickerson, Ted
Crawford and Andrew Johnson violated the Employee Retirement Income
Security Act (ERISA) while serving as fiduciaries to a series of
employee benefit plans. The defendants allegedly failed to remit
employee and employer contributions to the plans during a three month
period in 2003, even though assets were deducted from workers’
paychecks. Team America provided retirement savings plans as well as
long-term disability, and cafeteria-style health benefit plans and
insurance for the employees of client employers under a multiple
employer welfare arrangement.
“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 Joseph Menez, director of the Cincinnati
regional office of the Labor Department’s Employee Benefits Security
Administration (EBSA).
The suit seeks to require Team America and the three
individuals to restore all contributions plus interest. The suit also
seeks to permanently bar Nickerson, Crawford and Johnson from serving as
plan fiduciaries or service providers to any ERISA-covered plan, and
correct any prohibited transactions.
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.
The suit, filed in federal district court in Ohio,
resulted from an investigation conducted by the Cincinnati regional
office of EBSA. Employers and workers can reach the 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. In fiscal year 2005, EBSA achieved monetary results of
$1.7 billion related to pension, 401(k), health and other benefits for
millions of American workers and their families.
Chao v. Team America
Civil Action No. 2:06cv786
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