U.S. Labor Department Obtains Court Order Restoring More Than $39,000 to 401(k) Plan of Former Ft. Lauderdale, Florida, Company

Archived News Release — Caution: Information may be out of date.

Miami, Florida - The U.S. Labor Department has obtained a consent judgment ordering restoration of more than $39,000 to the 401(k) plan of former Telcon Inc., Ft. Lauderdale, Florida.

“This action sends a clear message that we will hold accountable those who are entrusted with employee contributions to benefit plans,” said Howard Marsh, Atlanta regional director of the department’s Employee Benefits Security Administration (EBSA).

The department filed suit in November 2004 alleging that Telcon and Giovanni D’Alessandro, the company’s president, violated the Employee Retirement Income Security Act by failing to remit employee contributions to the 401(k) plan in a timely manner.

Entered in U.S. District Court in Miami, the consent judgment requires the defendants to restore to the plan a total of $39,314, to be allocated to current and former participants and beneficiaries, except the defendants.

While in business, Telcon was a utility contactor. The company’s 401(k) plan had 21 participants and assets totaling $215,672 as of September 30, 2003.

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 program requires employers to correct all violations but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information about the VFCP, visit www.dol.gov/ebsa.

The department’s suit resulted from an investigation conducted by EBSA’s Miami district office. Employers and workers can contact the office at 954.424.4022 or the agency’s toll free number, 1.866.444.EBSA (3272), for help with any problems relating to private-sector pension and health plans. 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.

(Chao v. Telcon, Inc., and Giovanni D’Alessandro)
Civil Action No. 04-61557-CIV-ALTONGA/Turnoff

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Archived News Release — Caution: Information may be out of date.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