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Release Date: 12/23/2004
Release Number: 04-2554-BOS/BOS
2004-298
Contact Name: John
M.
Chavez
Phone Number: 617.565.2075
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Boston,
Massachusetts
-
A
lawsuit
filed
by
the
U.S.
Department
of
Labor
against
the
plan
sponsor
and
the
trustee
of
the
Northeast
Display
Inc.
401(k)
Savings
and
Investment
Plan
of
Worcester,
Massachusetts,
has
resulted
in
the
restoration
of
over
$35,000
to
the
plan. |
A
consent
judgment
and
order,
signed
December
17,
2004
by
U.S.
District
Judge
F.
Dennis
Saylor
IV,
orders
Brian
M.
Anger,
president
and
chief
executive
officer
of
NDI
International
Inc.
(also
known
as
Northeast
Display
Inc.),
who
also
served
as
the
plan’s
trustee,
to
restore
a
total
of
$35,623.42
to
the
plan
from
his
own
account. |
According
to
James
Benages,
Boston
regional
director
of
the
Labor
Department’s
Employee
Benefits
Security
Administration
(EBSA),
the
department
sued
Anger
and
his
now
bankrupt
company
earlier
this
year
alleging
violations
of
the
Employee
Retirement
Income
Security
Act
(ERISA),
the
federal
law
that
protects
private
sector
employee
pension
and
benefit
plans.
Specifically,
the
Department
alleged
that
NDI
International
failed
to
forward
over
$35,000
in
employee
contributions
to
the
plan
and
that
Anger,
as
trustee,
failed
to
ensure
that
those
amounts
were
forwarded
to
the
plan. |
The
court
judgment
prohibits
Anger
from
serving
as
a
fiduciary
or
service
provider
to
any
ERISA-covered
plan
and
prohibits
him
from
future
violations
of
the
law.
In
agreeing
to
the
consent
judgment,
Anger
neither
admits
nor
denies
the
allegations
contained
in
the
department’s
lawsuit. |
|
In
compliance
with
both
this
court
order
and
an
order
of
the
U.S.
Bankruptcy
Court,
the
Northeast
Display
401(k)
Savings
and
Investment
Plan
will
be
terminated
by
an
independent
fiduciary
and
the
plan’s
assets
will
be
distributed
to
the
plan’s
participants
and/or
beneficiaries. |
This
case
resulted
from
an
investigation
conducted
by
the
Boston
regional
office
of
the
Department’s
Employee
Benefits
Security
Administration.
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
program
requires
employers
to
make
workers
whole
but
allows
them
to
avoid
EBSA
enforcement
actions,
civil
penalties
and
any
applicable
excise
taxes.
For
more
information,
go
to
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
EBSA’s
Boston
regional
office
at
617.565.9600.
Help
with
problems
relating
to
private-sector
retirement
and
health
plans
can
also
be
obtained
by
calling
EBSA’s
toll-free
number
-
1.866.444.EBSA
(3272). |
(Chao
v
Brian
M.
Anger,
et
al)
Civil
Action
Number:
04-40065-FDS) |
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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