U.S. Labor Department Obtains Court Order to Restore More Than $58,000 to Former Statesboro, Georgia, Company’s 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Atlanta, Georgia - The U.S. Labor Department has obtained a consent judgment and order of non-dischargeability requiring Alfonzo Hall to restore more than $58,000 to the 401(k) plan of former International Agile Manufacturing (IAM), Statesboro, Georgia.

“This case sends a strong message that the Labor Department will hold accountable those who are entrusted with employee contributions to benefit plans,” said Howard Marsh, director of the Atlanta regional office of the Employee Benefits Security Administration (EBSA).

The department’s lawsuit alleged that IAM and Alonzo Hall, the company’s president and CEO, violated provisions of the Employee Retirement Income Security Act (ERISA). The suit alleged they breached their fiduciary responsibilities by, among other things, failing to remit to the 401(k) plan contributions that were withheld from employees’ pay checks.

Entered by U.S. Bankruptcy Court, the order also bars Hall from serving as a fiduciary of any employee benefit plan covered by ERISA.

IAM filed for bankruptcy in September 2003. As of December 2003, the company’s 401(k) plan had 48 participants and more than $88,300 in plan assets.

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). Participation in the VFCP 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.

EBSA’s Atlanta regional office investigated the case. Employers and workers can contact the office at 404.562.2156 or EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector pension and health plans. In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. International Agile Manufacturing)
Civil Action No. 05-06056-JSD

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Archived News Release — Caution: Information may be out of date.

Contact Name: Dan Fuqua/Jo Anne Burgoyne
Phone Number: 404.562.2078/404.562.2076