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Release Date: 12/07/2004
Release Number: 04-1893-DAL
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Dallas, Texas - The U.S. Department of Labor has
sued the trustees of Dallas-based C/A Communications, Inc. for failing to
remit and forward employee contributions in a timely manner to the company’s
401(k) plan and for retaining the contributions with the general assets of
the company. |
“This
action demonstrates the department’s commitment to protect the
retirement benefits of America’s workers,” said Roger Hilburn, acting
director of the department’s Dallas regional office of the Employee
Benefits Security Administration, which investigated the case. |
The
lawsuit, filed in federal district court in Dallas, alleges that trustees
Jerry Brown and Stuart Brown failed to timely remit employee contributions
to the plan from May 1998 through December 2001, in violation of the
Employee Retirement Income Security Act (ERISA). They also allegedly
failed to remit employee contributions to the plan for the December 15,
1998, payroll and from March to December 2001. At the time, Jerry Brown
also owned C/A Communications. The defendants also allegedly commingled
the employee contributions with the corporation’s general assets. |
The
department is seeking a court order requiring the defendants to restore to
the plan all contributions with interest, correct any prohibited
transactions, and offset the defendants’ plan accounts to repay any plan
losses. The suit also asks the court to permanently bar them from serving
any plan covered by ERISA and to appoint an independent fiduciary to
distribute 401(k) assets to participants and beneficiaries and to
terminate the plan. |
C/A
Communications, Inc. is a supplier of data communications equipment. The
plan had 13 plan participants and held $239,540 in assets as of August
2002. |
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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). For more
information see www.dol.gov/ebsa. |
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 the
Dallas regional office at 214.767.6831 or through EBSA’s toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao
v. Brown)
Civil Action No. 3:04-CV-2519-P |
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. |
