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News Release

U.S. Labor Department sues officer of Mequon, Wisconsin, travel service to recover contributions to company 401(k) plan

Archived News Release — Caution: Information may be out of date.

Mequon, Wisconsin – The U.S. Department of Labor has sued David Belfus, who operated as Your World Travel Services in Mequon, for failing to remit employee contributions to the company-sponsored 401(k) plan and co-mingling those funds with assets of the company.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Steven Haugen, director of the department’s Employee Benefits Security Administration (EBSA) Chicago Regional Office.

The lawsuit alleges that Belfus, as the plan fiduciary and sole owner of the travel service, violated the Employee Retirement Income Security Act by failing to remit and segregate employee contributions deducted from workers’ paychecks that were owed to the plan. Violations are alleged to have occurred from January through March 2005. The suit seeks to require that all contributions plus interest be restored to the 401(k) accounts.

Employers with similar problems who are not yet the subjects of EBSA investigations may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information, see

Employers and workers can reach EBSA’s Chicago Regional Office at 312.353.0900 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Belfus
Civil Action Number 07-C-0737.

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. 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 202.693.7828 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 the Department's Compliance Assistance page.

Archived News Release — Caution: Information may be out of date.

Employee Benefits Security Administration
August 21, 2007
Release Number