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News Release
Labor Department Sues Defunct Arkansas Trucking Company and Owner For Misusing Employee Benefit Plan Assets
Archived News Release — Caution: Information may be out of date.
Dallas, Texas - The U. S. Department of Labor filed suit May 10, 2002, against the defunct trucking company Eagle Wings Systems Inc. of Fort Smith, Arkansas, and its owner for misusing assets of the company’s profit sharing, 401(k) and health plans to benefit themselves.
“The Labor Department is committed to the protection of the benefits and plan assets designated to pay employees those benefits,” said Steve Eischen, director of the Dallas Regional Office of the department’s Pension and Welfare Benefits Administration (PWBA).
Named as defendants are the company and its owner Rex Mason. The plans covered truck drivers and office employees of the company, which ceased operations in October 2000.
The suit, filed in federal district court in Fort Smith, Arkansas, alleges that the defendants violated the Employee Retirement Income Security Act (ERISA) by transferring profit sharing plan assets to a party in interest, misleading participants about the status of the health plan and failing to properly administer the 401(k) plan.
As relief, the suit seeks a court order to require that the defendants restore all losses to the plans, with interest, which resulted from breaches of their fiduciary obligations, correct all prohibited transactions and, if necessary, to offset any claims which they may have against the plans by the amount of losses, including lost opportunity costs resulting from the violations. The suit also asks that the defendants be permanently barred from serving as fiduciaries to any plan governed by ERISA.
Employers and workers can reach the Dallas regional office at 214.767.6831 or through the new Toll-Free Employee & Employer Hotline number, 1.866.275.7922, for help with any problems relating to private-sector pension and health plans.
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Archived News Release — Caution: Information may be out of date.