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Release Date: 09/24/2004
Release Number: 04-1750-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Chicago, Illinois - The U.S. Department of Labor
has sued the owner of defunct Western Rubber, Inc. of Goshen, Indiana, to
recover employee contributions that he failed to forward to the company’s
self-insured health plan. |
“We
filed this case to ensure that the plan participants recoup the money they
contributed to pay for their health benefits,” said Kenneth Bazar,
director of the Employee Benefits Security Administration’s (EBSA)
Chicago regional office. |
The
suit alleges that the Steven Whiting violated the Employee Retirement
Income Security Act (ERISA) when he failed to forward to the health plan
contributions withheld from employees’ paychecks from June 2001 to
February 2002. The suit seeks to require that Whiting repay to the plan
any losses with interest and to undo and transactions prohibited by ERISA.
The department also asks the court to permanently bar Whiting from serving
as a fiduciary to any plan governed by ERISA and to appoint an independent
fiduciary to manage the Western Rubber health plan. |
Western
Rubber was one of several subsidiaries of Garrett Group, Inc., owned by
Whiting. The company manufactured rubber seals, rings and plugs. The
Western Rubber, Inc. Medical and Prescription Drug Plan covered as many as
50 participants as of July 2001. |
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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 the federal district court in Goshen, Indiana, resulted
from an investigation conducted by EBSA’s Chicago regional office. In
fiscal year 2003, EBSA achieved record monetary results totaling $1.4
billion for retirement, 401(k), health and other programs. Employers and
workers can reach the Chicago office at 312.353.0900 or through EBSA’s
toll-free number at 1.866.444.EBSA (3272), for help with problems relating
to private-sector retirement and health plans. |
(Chao
v. Whiting)
Civil Action No. 04-CV-599 RM |
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. |
