U.S. Labor Department Gets Court Order Restoring Assets To Former Hebron, Kentucky 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Covington, Kentucky - The U.S. Department of Labor has obtained a consent judgment requiring Mitchell Molding Company Inc., Hebron, Kentucky, and its bankrupt former owner to restore delinquent employee contributions to the company’s 401(k) plan.

“The Labor Department will act when plan fiduciaries fail to carry out their duties to protect plan assets held on behalf of participants,” said Joseph Menez, director of the Cincinnati regional office of the department’s Employee Benefits Security Administration (EBSA), which investigated the case.

The department’s lawsuit alleged that Mitchell Molding and John P Chalfant of Ft. Mitchell, Kentucky, violated the Employee Retirement Income Security Act (ERISA) when they failed to timely remit employee contributions to the plan at various times between January 6 and June 29, 2000, and failed to remit any employee contributions made between July 6, 2000 and March 27, 2003.

Under the judgment, entered in federal district court in Covington, Kentucky, the company and Chalfant must restore to the plan $1,513 in delinquent and untimely employee contributions. Mitchell Molding was in the business of plastic injection molding. The 401(k) plan covered five participants and had assets of $8,455 as of March 31, 2004.

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers with similar problems, who are not yet the subject of an EBSA investigation, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to correct violations of the law 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.

Employers and workers can reach the Cincinnati office of the EBSA at 859.578.4680 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. Mitchell Molding Company Inc.)
Civil Action No. 05-235-DLB

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Archived News Release — Caution: Information may be out of date.

Contact Name: Dan Fuqua
Phone Number: 404.562.2078