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Release Date: 10/03/2002
Release Number: 17
Contact Name: Gloria Della
Phone Number: 202.693.8666
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Minneapolis, Minnesota - The U.S. Department of Labor obtained
a court judgment on September 30, requiring the owner of Advanced Duplicating &
Printing, Inc. in Minneapolis, Minnesota to pay $45,535 in restitution to the
company’s 401(k) plan for failure to remit employee contributions and loan
payments to the plan during his tenure as a trustee. |
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“Our action today restores to the plan assets that were
improperly used to benefit the employer and makes assets available to pay
benefits owed to workers,” said Kansas City Regional Director Gregory Egan.
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The judgment also requires that defendant Charles Rolfes
be permanently barred from serving as a fiduciary to any plan governed by the
Employee Retirement Income Security Act (ERISA). Further, the judgment
orders Rolfes to offset his plan account to reimburse the plan, reimburse the
plan for any amount owed in excess of his plan account, and to terminate the
plan. |
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The Labor Department sued Rolfes on July 17 for failure to
remit employee contributions and loan payments to the plan over the period
January 2000 to October 2001 and for commingling the plan’s assets with those
of the company. Rolfes also failed to obtain a fidelity bond as required
by law. |
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Advanced Duplicating & Printing filed for Chapter 11
bankruptcy on January 12, 2001 and ceased business operations in June of that year.
The plan covered as many as 44 participants and had $1,088,534 in assets as of
December 31, 1999. |
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The judgment, entered in federal district court in
Minneapolis, Minnesota, resulted from an investigation conducted by the Kansas City
Regional Office of the department’s Pension and Welfare Benefits
Administration (EBSA). |
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Egan 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. |
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"The VFCP gives plan sponsors a way to come into
compliance with ERISA by restoring workers' benefits while avoiding an
investigation by EBSA, said Egan. It protects workers' health and
retirement benefits and allows us to focus our resources on those who seek to
avoid compliance." For more information about the VFCP see www.dol.gov/ebsa. |
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Employers and workers can reach the Kansas City Regional
Office at 816.426.5131 or EBSA’s Toll-Free Employee & Employer Hotline number,
1.866.275.7922, for help
with problems relating to private-sector pension and health plans.
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(Chao v. Rolfes
Civil Action No. 02-1770 PAM/RLE) |
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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. |
