Labor Department Sues Dayton, Ohio Plan Fiduciary for Misusing Company Plan Assets

Archived News Release — Caution: Information may be out of date.

Cincinnati, Ohio - The U.S. Department of Labor has sued Peter Slyman, the fiduciary of the health benefit and 401(k) plans for WagnerWare Corporation in Dayton, Ohio, for failing to deposit money that was withheld from employees’ paychecks as contributions to the plans and for failing to obtain a fidelity bond.

“This action demonstrates our commitment to protect the benefits of American workers,” said Joseph Menez, director of the Pension and Welfare Benefits Administration’s Cincinnati regional office.

The suit, filed June 14, alleges that Slyman violated the Employee Retirement Income Security Act (ERISA) by failing to forward to the plan money withheld from the paychecks of employees as contributions to the health benefit and 401(k) plans from April through July 1999. The suit also alleges the defendant retained the plan contributions in the general assets of Wagner Manufacturing Company, where it was used to meet the company’s operating expenses, and did not secure adequate fidelity bonds for plan years 1998 and 1999.

The suit seeks to have the defendant restore all losses resulting from his fiduciary breaches to the plans, to correct the prohibited transactions in which he engaged, to disgorge any profits made from those transactions, and to pay the appropriate interest.

WagnerWare Corporation, which operated as Wagner Manufacturing Company, sponsored the health benefit and 401(k) plans for 98 employees. The company ceased doing business in July 1999.

The suit, filed in the federal district court in Dayton, Ohio, was investigated 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. Slyman et al
Civil Action No. C 3-02-273)

U.S. Department of Labor news releases are accessible on the Internet. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the Central Office for Assistive Services and Technology. Please specify which news release when placing your request. Call 202.693.7773 or TTY 202.693.7775.

Printer Friendly Version

Archived News Release — Caution: Information may be out of date.