Executive Of Decatur, Ill. Firm To Guarantee Restitution To 401(K) Plan

Archived News Release — Caution: Information may be out of date.

The U. S. Department of Labor has obtained a consent judgment requiring the president of Jan-San Supply Company of Decatur, Ill., to guarantee repayment of $45,000 owed to the plan as restitution for violations committed in his capacity as a trustee of the company’s 401(k) plan.

Under the judgment, James Lambert will personally guarantee payment of the outstanding employee contributions and lost interest owed by the company. Jan-San was approved on Jan. 6, 1999 for bankruptcy reorganization by the United States Bankruptcy Court.

The lawsuit filed simultaneously with the judgment on May 5 alleges that Lambert violated the Employee Retirement Income Security Act. He allegedly allowed Jan-San to retain voluntary employee contributions withheld from employee paychecks and failed to promptly remit the money to the plan’s investment accounts.

Jan-San Supply Company sells cleaning supplies and provides contracted cleaning services. The plan — which provides retirement, disability and death benefits — covered 45 participants and had $336,170 in assets at the end of 1996. The plan provides for voluntary employee contributions.

The consent order was entered in federal district court in Urbana, Ill. The court action resulted from an investigation by the St. Louis District Office of the department’s Pension and Welfare Benefits Administration into alleged violations of ERISA.

Herman v. James Lambert
Civil Action No. 99-2093

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Archived News Release — Caution: Information may be out of date.

Contact Name: Gloria Della
Phone Number: 202.219.8921