Illinois Corporation Ordered To Pay Labor Department $53,062 For Breach Of Contract

Archived News Release — Caution: Information may be out of date.

Current Development Corporation in Elmhurst, Ill., has been ordered by a Cincinnati administrative law judge to pay the Labor Department $53,062 in penalties for disregarding a settlement agreement correcting reporting and disclosure violations under the federal pension law.

The decision and order stems from a motion filed by the department on Feb. 16, 1999, alleging that the corporation failed to timely file its 1995-1996 participant account statements and Form 5500 Annual Reports, its 1992-1996 Form 5500 C/Rs, and to timely pay $15,000 in civil penalties that stemmed from a settlement of these charges.

“PWBA works closely with companies to assist them in voluntarily correcting violations of reporting and disclosure provisions of the Employee Retirement Income Security Act,” said Deputy Assistant Secretary for Program Operations Alan Lebowitz. “However, the court’s action sends a strong and serious message that companies who fail to comply with these provisions will be held accountable to the fullest extent of the law.”

In rendering its decision, the administrative law judge originally fined the corporation $2,311,300 in penalties to cover the corporation’s initial failure to file timely reports, and subsequent breaches stemming from disregarding the settlement agreement and failing to pay the civil penalties. The judge reduced the penalty to $53,062, provided the penalty was paid within 30 days following the Feb. 22 decision and order.

U. S. Department of Labor v. Current Development Corporation
Case No. 1996-RIS-67

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Archived News Release — Caution: Information may be out of date.