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Release Date: 09/26/2003
Release Number: 394
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Chicago, Illinois - The U.S. Department of Labor
has sued Meade Communications, Inc., of Berkeley, Illinois, and the
fiduciary of the company’s 401(k) plan for failure to remit employee
contributions and loan repayments to the plan. |
An
investigation was conducted by the department’s Employee Benefits
Security Administration (EBSA) office in Chicago. As a result of this
investigation, the lawsuit, filed August 25, 2003, in federal district
court in Chicago, alleges that the company and James C. Hartmann failed to
remit employee contributions and loan repayments and to timely remit the
funds to the plan’s investment accounts on numerous occasions over the
period January 6, 1998, to January 16, 2001. The withholdings allegedly
were commingled with Meade’s general assets. Hartmann is president of
the company and plan trustee. |
“The
department is seeking to help the workers participating in this plan
through these legal actions. This case seeks to require the defendants
repay the losses, including interest, and asks to have Hartmann’s
individual plan account offset to accomplish the restoration,” said Ann
Combs, Assistant Secretary of the Employee Benefits Security
Administration. |
The
suit also seeks to permanently bar the defendants from serving as
fiduciaries to any employee benefit plan covered by the Employee
Retirement Income Security Act (ERISA) and to appoint an independent
fiduciary to oversee the plan. |
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Meade Communications, Inc., created the plan to assist
eligible employees to provide for their own retirement security. The plan
had $1,376,250 in assets and 27 participants as of December 31, 1999. |
Kenneth
Bazar, director of the Chicago Regional EBSA office, noted that 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. |
Employers
and workers can contact the regional office at 312.353.0900 or EBSA’s
toll-free number at 1.866.444.EBSA (3272), for help with problems relating
to private-sector pension and health plans. |
(Chao
v. Meade Communications)
Civil Action No. 03-C-5977 |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
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