|
|
|
Release Date: 12/04/2001
Release Number: V-81
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
|
|
|
|
|
Chicago, Illinois - The U.S. Department of Labor
today sued Packaging Graphics, Inc., a defunct Maywood, Illinois. Company,
and its president for failure to remit employee contributions to the
company’s 401(k) plan and failure to collect participant loan payments
owed to the plan. |
|
The suit, filed in federal district court in Chicago,
alleges that corporate president Kenneth Boese withheld contributions from
employees’ paychecks from July 30, 1999 through June 15, 2001 and failed
to remit the contributions at all. From April 1, 1998 through April 7,
2000, Boese failed to remit the employees’ contributions in a timely
manner. The suit alleges that the employee contributions were held in the
general assets of the company. |
|
Boese, the sole trustee of the plan, also allegedly
took out a $17,500 participant loan from his individual account balance
and failed to make a single payment on the loan. |
|
The department is seeking a court order to require an
offset of Boese’s individual plan account for any losses owed to the
plan, including lost opportunity costs, to reallocate the offset to the
accounts of other plan participants, to permanently bar Boese from serving
any employee benefit plan governed by the Employee Retirement Income
Security Act (ERISA), and to appoint an independent fiduciary to
administer and terminate the plan. |
|
Boese filed for Chapter 7 personal bankruptcy on July
27, 2001. The department filed an adversary complaint in bankruptcy court
on October 26, 2001, alleging violations of ERISA. The court actions seeks
to prevent Boese from discharging any debts owed to the plan under the
bankruptcy proceeding. |
|
As of Decrmber 31, 2000, the plan had
approximately 34 participants and $193,907 in assets. |
|
The Chicago Regional Office of the department’s
Pension and Welfare Benefits Administration conducted the investigation
leading to the lawsuit alleging violations of federal pension law. |
|
(Chao v. Packaging Graphics, Inc.
Civil Action No. 01-C-9252)
(Chao v. Kenneth Boese
Chapter 7 Bankruptcy Action No. 01-26069) |
|
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 202.693.7775. |
| |
|
