Labor Department Sues Cook County Company Plan Trustee For Failing to Forward Employee Contributions and Loan Repayments

Archived News Release — Caution: Information may be out of date.

Chicago, Illinois - The U.S. Department of Labor has sued the trustee of the 401(k) and health plans of Intaglio Vivi-Color Alliance Ltd. of Cook County, Illinois, for failing to forward contributions and loan repayments withheld from employees’ paychecks to the plans. Named defendants in the lawsuit, filed March 27 in federal district court in Chicago, are the company and Roger Weiler, company president and trustee to both plans.

“When employers fail to act in the best interests of their workers, we must take action to see that promised benefits are restored,” said Kenneth Bazar, director of the department’s Chicago regional office of the Employee Benefits Security Administration (EBSA), which investigated the case.

The suit alleges that Intaglio withheld employee contributions and loan repayments owed to the retirement plan from June 1, 2001 to September 22, 2001, and also failed to forward employee insurance premiums for dependant health insurance coverage from June 1, 2001 to September 1, 2001, retaining these contributions in the company’s general assets. The suit further alleges that the company also failed to obtain fidelity bonds for the plans as required by the Employee Retirement Income Security Act (ERISA).

The suit seeks a court order to have the defendants repay any losses, including lost opportunity costs, and to appoint an independent fiduciary to manage the plans after the defendants are removed and permanently barred from serving as fiduciaries or service providers to any ERISA-covered employee benefit plans. The suit also asks that Weiler obtain fidelity bonds for both plans and keep them active until the plans are terminated.
As of December 31, 2000, the plan had 73 participants and assets totaling $6,785,722. Intaglio is a closely-held corporation engaged in a pre-press graphic arts business.

Employers with similar problems, who are not yet the subject of an investigation by EBSA, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Employers must make workers whole, but they may avoid EBSA enforcement actions and civil penalties, as well as any applicable excise taxes. For more information about the VFCP see www.dol.gov/ebsa.

Employers and workers who have questions or concerns regarding their private-sector pension and health plans can contact the EBSA regional office for help at 312.353.0900 or EBSA’s toll free number, 1.866.444.EBSA (3272).

(Chao v. Roger Weiler)
Civil Action No. 03C-2170

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