Department Of Labor Wins More Than $63 Thousand Judgment Against Memphis Company And President For Failure To Remit Plan Money

Archived News Release — Caution: Information may be out of date.

American Technical Institute (ATI) of Memphis, Tenn., and its president, Dr. Dallas Wayne Jones, were ordered to pay $63,554.68 to the institute’s money purchase plan in a judgment won Dec. 1, 1999, by the U.S. Department of Labor.

The amount restored to the money purchase pension plan represented $45,208.73 of employer contributions and lost earnings payable by ATI and $18,345.95 of employee contributions and lost earnings payable by both Jones and ATI.

The judgment resulted from a January 1999 lawsuit that alleged the defendants failed to timely transmit employer and employee contributions owed to the institute’s money purchase pension plan, which covered as many as 11 participants.

The lawsuit alleged Jones did not transmit employee contributions from August 1994 to January 1995 and from Jan. 1, 1998, to July 30, 1998, to the Teachers Insurance and Annuity Association College Retirement Equities Fund, an annuity established for plan participants, and that delinquent matching employer contributions had not been collected since August 1994. Damages awarded include lost earnings on contributions remitted to the trust untimely from August 1 994 through April 1999.

The judgment resulted from an investigation by the Atlanta Regional Officeof the department’s Pension and Welfare Benefits Administration into violations of the Employee Retirement Income Security Act. It was entered in the federal district court in Memphis, Tenn.

Herman v. American Technical Institute
and Dr. Dallas Wayne Jones
Civil Action No. 99 CV 2066

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Archived News Release — Caution: Information may be out of date.

Contact Name: Rita Ford
Phone Number: 202.219.8921