Dallas Audio/Video Producers Sued To Restore Delinquent Employee Contributions to Pension Fund

Archived News Release — Caution: Information may be out of date.

Dallas, Texas - The U.S. Department of Labor has sued executives of defunct Intelecon Services Inc., Dallas, Texas, to recover delinquent employee contributions and loan repayments owed to the 401(k) plan.

The suit, filed in the federal district court in Dallas, alleges that Edward Vakser and Vladimir Vakser of Plano, corporate executives of the company and plan fiduciaries, failed to remit employee contributions and loan repayments in violation of the Employee Retirement Income Security Act (ERISA). The suit seeks to require the Vaksers to restore all plan losses with interest and to enjoin them from serving as fiduciaries to any plan covered by ERISA.

As of May 21, 2004, lost earnings, unremitted employee and employer matching contributions and loans totaled $46,308.

“This action demonstrates our commitment to protect the hard-earned benefits of American workers,” said Roger Hilburn, director of the department’s Dallas regional office of the Employee Benefits Security Administration (EBSA), which investigated this case.

Employees 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). Participation in the program requires employers to correct violations of the law but allows them to 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.

In fiscal year 2004, EBSA achieved record monetary results of $3.1 billion related to the pension, 401(k), health and other benefits of millions of American workers and their families. Employers and workers can reach EBSA’s Dallas regional office at 214.767.6831 or through its toll-free number, 1.866.444.EBSA (3272), for help with problems related to private-sector retirement and health plans.

(Chao v. Edward Vakser, Vladimir Vakser, Intelecon Services Inc., and the Intelecon Services Inc., 401k Retirement Savings Plan)
Civil Action No. 3:05-cv-790-D

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Archived News Release — Caution: Information may be out of date.