Labor Department Judgment Restores Assets To Participants of Michigan Corporate Pension Plan

Archived News Release — Caution: Information may be out of date.

Cincinnati, Ohio - The U.S. Department of Labor obtained a consent order and judgment on May 24, 2002, restoring $15,179.46 in profit sharing plan assets from the account of the former owner of Great Lakes Color Printers, Inc. in Oak Park, Michigan, to the remaining plan participants.

“This action reaffirms our commitment to protect the hard-earned benefits promised by employers,” said Joseph Menez, Director of the Cincinnati regional office of the Pension and Welfare Benefits Administration (PWBA).

Assets from the account of now-deceased Jihad Moukalled, the company’s former owner, will be distributed to other participants as restitution for failure to deposit pension contributions withheld from employees into the plan. The judgment also appoints Larry Lefoldt as the independent fiduciary of the profit sharing plan, with authority to manage plan assets, terminate the plan and distribute its assets to participants.

A suit filed on April 1, 2002 alleged Moukalled retained pension contributions of employees in the company’s general assets for the period March 20, 1998 to November 22, 2000. The suit named National City Bank of Michigan/Illinois, the personal representative of the estate of Moukalled, in order to obtain relief for the plan and its participants.

The profit sharing plan covered 23 participants and had $297,005 in assets as of December 31, 1999.
Menez said the department's Voluntary Fiduciary Correction Program (VFCP) allows plans to correct failures in forwarding contributions withheld from employees’ paychecks and certain other ERISA violations. Eligible applicants who properly correct transactions under the program will not be subject to the enforcement action and will not be liable for civil penalties. Excise tax liability under the Internal Revenue Code is also eliminated for certain transactions.

This suit was filed in federal district court in Detroit, Michigan, following an investigation by the Cincinnati regional office of PWBA. Employers and workers can contact the regional office at 859.578.4680 or PWBA’s Toll-Free Employee & Employer Hotline number, 1.866.275.7922, for help with problems relating to private-sector pension and health plans.

(Chao v. National City Bank of Michigan/Illinois
Civil Action No. 02-71261)

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