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News Release

U.S. Department of Labor obtains consent order to restore more than $35,000 to 401(k) plan of Burlington, New Jersey company

Archived News Release — Caution: Information may be out of date.

Burlington, New Jersey — Russell Johnson and Shellene Barker, trustees of the Johnson Specialized Transportation Inc. 401(k) Plan, have agreed to restore $35,043 to the plan under a consent order obtained by the U.S. Department of Labor.

The order resolves the Labor Department’s lawsuit against the Burlington towing company and its officers. The suit, filed in the U.S. District Court for the District of New Jersey in September 2006, alleged that Johnson and Barker failed to forward contributions or take reasonable steps to collect contributions owed to the plan from the time it was established in October 2001 through the time it was frozen in 2003.

“This action is another example of the Labor Department’s commitment to ensure that the retirement benefits of America’s workers are protected,” said Mabel Capolongo, director of the department’s Employee Benefits Security Administration (EBSA) Philadelphia Regional Office.

The order also permanently prohibits Johnson and Barker from acting as fiduciaries to any employee benefit plan covered under the Employee Retirement Income Security Act or violating any provision of the act in the future. Jacqueline Carmichael has been appointed as an independent fiduciary and is authorized to terminate the plan and distribute its assets.

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.

Employers with similar problems who are not yet subjects of investigations by EBSA may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP 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 about the VFCP or other agency programs, see

Employers and workers with questions or concerns regarding their private sector pension and health plans can contact EBSA’s Philadelphia Regional Office at 215.861.5300 or toll-free at 1.866.444.EBSA (3272).

Chao v. Russell Johnson et. al.;
Civil Action Number: 06-CV-4245

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 27, 2007
Release Number
07-1225-PHI (ebsa 07-136)