U.S. Labor Department Sues Former President of Detroit Company To Restore Employee Contributions to 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Detroit, Michigan - The U.S. Department of Labor sued the former president and part-owner of Accutek Services Inc, Detroit, Michigan, to restore losses suffered by the company’s 401(k) plan when he failed to remit employee contributions, used plan assets to operate the company and failed to administer the plan.

“This action demonstrates the department’s commitment to protect the retirement benefits of America’s workers,” said Joseph Menez, director of the department’s Cincinnati regional office of the Employee Benefits Security Administration (EBSA), which investigated the case.

The lawsuit, filed in federal district court in Detroit, alleges that Jason M. Goelde violated the Employee Retirement Income Security Act (ERISA) by failing to remit and timely forward to the plan contributions withheld from employees’ paychecks between July 20 and August 31, 2001. Goelde also mingled 401(k) assets with those of the company, used the assets to pay Accutek’s general operating expenses and did not properly terminate the plan in order to distribute the assets to all eligible participants. In addition, he failed to obtain a fidelity bond as required by law.

The department is seeking a court order requiring Goelde to restore all losses with interest and to undo any transactions prohibited by ERISA. The suit also asks the court to permanently bar Goelde from future service to plans governed by ERISA; to require him to obtain and maintain a fidelity bond until the Accutek plan is terminated, and to properly terminate the plan and distribute its assets to participants.

Accutek Services was a computer services firm until it ceased operations in August 2001. At the time of the alleged violations, Goelde was the president and part-owner of Accutek.

EBSA’s Cincinnati office can be reached at 859.578.4680 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans. Additional information can also be obtained at www.dol.gov/ebsa.

(Chao v. Goelde)
Civil Action No. 2:06-CV-10525

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Archived News Release — Caution: Information may be out of date.

Contact Name: Gloria Della/David James
Phone Number: 202.693.8664/202.693.4676