Colorado Plan Trustee Sued for Failure to Secure Pension Assets

Archived News Release — Caution: Information may be out of date.

Kansas City, Missouri - The U.S. Department of Labor sued a trustee of the Health Care Services, Inc. 401(k) profit sharing plan in Craig, Colorado on August 31, 2001, for failure to remit $17,000 in employee contributions to the plan.

The Labor Department’s lawsuit alleges that trustee Neil E. Hansen, also the president and 50 percent owner of the company, failed to transfer to the plan money withheld from employees’ wages between 1996 and 1998. Hansen also allegedly violated the Employee Retirement Income Security Act (ERISA) by:

• Failing to file since 1996 and subsequent years’ annual reports required by law and to provide the reports to plan participants
• Failing to file a report upon termination of the plan.

The lawsuit seeks a court order requiring the defendant to restore all losses to the profit sharing plan including lost interest, file all necessary annual report forms and to terminate the plan.

As of December 31, 1995, the plan had $36,394 in total assets and 21 participants.

“This action reaffirms our commitment to protect the hard-earned benefits promised by employers,” said Gregory P. Egan, director of the Kansas City Regional Office of the Pension and Welfare Benefits Administration. Employers and workers can reach us at 816.426.5131 for help with any problems relating to private-sector pension and health plans.”

This case resulted from an investigation conducted by the Kansas City Regional Office of the department’s Pension and Welfare Benefits Administration into violations into ERISA. The lawsuit was filed in the federal district court in Denver.

(Chao v. Hansen
Civil Action No. 01-WM-1727)

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Archived News Release — Caution: Information may be out of date.