U.S. Labor Department Sues Trustee of Columbus, Nebraska, 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Columbus, Nebraska - The U.S. Department of Labor filed a lawsuit in the U.S. District Court of Nebraska against the trustee of the Columbus Irrigation Inc. 401(k) plan for violations of the Employee Retirement Income Security Act.

The suit alleges that Marvin J. Charipar, trustee and president, treasurer, director and operator of Columbus Irrigation, failed to forward plan contributions deducted from employees’ paychecks from February 2003 to January 2004 and retained those assets in the company’s corporate account.

Steven Eischen, director of the Kansas City regional office of the Employee Benefits Security Administration (EBSA), said, “The law states that plan fiduciaries have a responsibility to manage the money set aside in retirement plans for the benefit of employees and their families. Our legal action is designed to restore funds to pay future benefits to these plan participants.”

Charipar terminated the 401(k) plan August 1, 2004. According to the suit, he is being required to restore all losses with interest to the now-defunct plan and to correct any transactions prohibited by law.

Employers with similar problems, who are not currently the subject of an EBSA investigation, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to correct any violations but allows them to avoid EBSA enforcement actions and civil penalties as well as applicable excise taxes. For more information about the VFCP, see www.dol.gov/ebsa.

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can reach EBSA’s Kansas City regional office at 816.426.5131 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.

(Chao v. Marvin J. Charipar)
Civil Action No.: 8:06CV295

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Archived News Release — Caution: Information may be out of date.

Contact Name: Norma Conrad
Phone Number: 816.426.5481