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Release Date: 10/29/2003
Release Number: 03-641-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Chicago, Illinois - The U.S. Department of Labor
filed a lawsuit on October 2, 2003, seeking to restore losses suffered by
the ONIT 401(k) plan in Madison, Wisconsin when the plan trustee failed to
forward employee contributions to the plan and retained plan assets with
those of the computer technology firm. |
ONIT
L.L.C. was owned by defendant Christopher Brian Cook until the firm ceased
operating on March 27, 2003 due to financial difficulties. Cook filed for
Chapter 7 personal bankruptcy on February 27, 2003. The plan allowed
employees to have 401(k) contributions withheld from their paychecks and
employer contribution. As of December 31, 2000, the plan had $107,840 in
assets and covered 48 participants. |
The
department is seeking a court order to require Cook to repay all losses
with interest, to offset his 401(k) account to repay any losses, to undo
any transactions prohibited by law and to return illegal profits received
by him. The suit also seeks to permanently bar him from serving any plan
governed by the Employee Retirement Income Security Act (ERISA) in the
future. |
“Trustees
of a 401(k) plan have a responsibility to ensure that the assets of the
plan are used solely to benefit participants. One of the most important is
putting money from workers’ wages into their 401(k) accounts on time,”
said Ken Bazar, director of the Chicago regional office of the Employee
Benefits Security Administration (EBSA) that investigated the case. |
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Bazar noted that employers with similar problems, who
are not yet the subject of an investigation by the EBSA, may be eligible
to participate in the department's Voluntary Fiduciary Correction Program
(VFCP). Participation in the program 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, 1.866.444.EBSA (3272), for help with problems relating
to private-sector pension and health plans. |
(Chao
v Cook)
Civil Action No. 03-C-0551-C |
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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. |
