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Release Date: 12/01/2004
Release Number: 04-2230-CHI
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Detroit, Michigan - The U.S. Department of Labor
has sued the former owner of defunct Aerial Ventures Management and
Concepts of Detroit for failing to forward contributions of employees to
the company’s 401(k) plan and commingling plan assets with those of the
company. |
“This
action demonstrates our commitment to protect the hard-earned benefits of
American workers,” said Joseph Menez, director of the department’s
Employee Benefits Security Administration’s (EBSA) Cincinnati regional
office, which investigated the case. |
The
suit alleges that Danny A. Wilkerson, the plan’s trustee and owner of
Aerial Ventures Management and Concepts, violated the Employee Retirement
Income Security Act (ERISA). He allegedly failed to remit employee
contributions to the 401(k) plan on January 3, 2002, and November 7, 2002,
through January 9, 2003, commingled the contributions with assets of the
company, and did not maintain a fidelity bond for the plan. |
The
suit seeks to require Wilkerson to restore all losses to the plan with
interest, correct the prohibited transactions, obtain a fidelity bond for
the plan until it is terminated, and permanently bar him from serving as a
fiduciary to any employee benefit plan covered by ERISA. |
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Aerial Ventures Management and Concepts, a valet
parking subcontractor to AMPCO System Parking at the Detroit-Wayne County
Metro Airport, ceased operations in January 2003. The plan had
approximately 22 participants and held $54,482.00 in assets as of December
2002. |
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 filed in federal district court in Detroit, was based on an
investigation conducted by EBSA’s Cincinnati regional office. In fiscal
year 2004, EBSA achieved record monetary results of $3.1 billion related
to the pension, 401(k), health and other benefits of millions of American
workers and their families. Employers and workers can reach EBSA’s
Cincinnati regional office at 859.578.4680 or through its toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao
v. Wilkerson)
Civil Action No. 04-74645 |
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. |
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