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Release Date: 10/29/2003
Release Number: 03-642-CHI
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Chicago, Illinois - The U.S. Department of Labor
has sued Belgium Foundry Acquisition Company, Inc., of Belgium, Wisconsin,
and a trustee of its union and non-union 401(k) plans for failing to
forward $60,433.73 in employee contributions and interest to the plans. |
“The
department is committed to protecting the benefits of workers,” said
Kenneth Bazar, director of the Chicago regional office of the Employee
Benefits Security Administration (EBSA), which investigated the case. “One
of the most important responsibilities of plan officials is to put money
from workers’ wages into their 401(k) accounts on time.” |
The
company and James C. Medinger -- vice president, an owner of the company,
and trustee of both plans -- allegedly withheld the employee
contributions, failed to forward them to the respective plans and retained
the funds in the company’s own general assets from January 2000 to
January 2003. |
The
department also filed an adversarial complaint with the U.S. Bankruptcy
Court in the eastern district of Wisconsin to prevent Medinger from
discharging debts owed to the plans. Medinger filed for Chapter 7
bankruptcy on April 9, 2003. The company initiated State of Wisconsin
Receivership proceedings in January 2003 in circuit court in Ozaukee
County. Its final disposition is pending. |
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The suit seeks to restore employee contributions to the
plans with interest and permanently bar Medinger from serving as a
fiduciary to any plan governed by the Employee Retirement Income Security
Act (ERISA). |
Belgium’s
principal business was the manufacturing of castings for agricultural and
electronic equipment. The non-union plan, adopted in April 1993, had 7
participants and $272,802 in assets as of December 31, 2001. The union
plan, adopted in January 1984, had 33 active participants and $762,543 in
assets as of December 31, 2001. |
This
suit, filed in federal district court in the eastern district of Wisconsin
in Milwaukee on October 14, resulted from an investigation conducted by
EBSA’s Chicago regional office. Employers and workers can contact the
regional office at 312.353.0900 or through EBSA’s toll free number,
1.866.444.EBSA (3272), for help with any problems relating to
private-sector retirement and health plans. |
(Chao
v. Medinger)
Civil Action No. 03-C-0998
Adversary Complaint No. 2003-2525 |
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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. |
