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News Brief

US Labor Department obtains consent judgment restoring more than $77,000 to 401(k) plan of Cardservice of Virginia Inc. in Virginia Beach, Va.

Date of Action: Jan. 9, 2013

Type of Action: Consent judgment

Name(s) of Defendant(s): Richard Yanek, president, sole owner and trustee of the 401(k) plan, and Cardservice of Virginia Inc.

Allegations: During some or all of the time from Jan. 1, 2007 through April 30, 2011, Cardservice of Virginia Inc. deducted money from employees’ paychecks as elective salary deferrals and participant loan repayments to be deposited into the plan.  Beginning on or near August 2007, the defendants failed to remit employee contributions to the plan, remitted certain employee contributions late without interest and failed to segregate the plan’s assets from the general assets of the company.

Resolution: The U.S. Department of Labor obtained a consent judgment ordering Cardservice of Virginia Inc. and its owner, Richard Yanek, to restore $21,904.10 in plan assets and $51,725.27 in prejudgment interest to the company’s 401(k) plan. Additionally, the defendants are required to restore $3,877.50 to the plan for the costs relating to the hiring of an independent fiduciary to administer the plan.  The defendants must also pay a mandatory penalty of $15,501.37. Under the judgment, the defendants are permanently enjoined from acting as a fiduciary or service provider to any plan covered by the Employee Retirement Income Security Act and have the duty to cooperate fully in the termination of the plan and the distribution of its assets, to the extent that such cooperation is required.

The judgment resolves a lawsuit filed by the department on Jan. 4, 2013.

Court: U.S. District Court for the Eastern District of Virginia

Docket Number: 1:13-cv12-TSE/JFA

U.S. Department of Labor materials are accessible at  The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.

Employee Benefits Security Administration
January 14, 2013
Release Number
EBSA 13-003