Labor Department Sues Officer of Chicago Business To Restore Delinquent Contributions to Company’s Retirement Savings Plan

Archived News Release — Caution: Information may be out of date.

Chicago, Illinois - The U.S. Department of Labor has sued Robert M. Beevers, owner of Pre-Press Graphics Company, Chicago, for failing to forward employee contributions to the company’s pension plan and to segregate plan contributions from the general operating assets of the company, which conducted business under the name of R&B Group.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Kenneth Bazar, director of the department’s Chicago regional office of the Employee Benefits Security Administration (EBSA).

The lawsuit alleges that Beevers failed to remit employee contributions and loan repayments to the retirement savings plan during 2004, even though assets were deducted from workers’ paychecks. It also charges that plan money was co-mingled with company assets, in violation of the Employee Retirement Income Security Act. Beevers acted as trustee of the plan.

The suit seeks to require Beevers to restore to the plan all contributions plus interest, remove him as plan fiduciary and correct any prohibited transactions. The suit also asks the court to appoint an independent fiduciary to terminate the plan and distribute its assets to the participants and beneficiaries.

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 any 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, see www.dol.gov/ebsa.

The suit, filed in federal district court in Chicago, resulted from an investigation conducted by the Chicago regional office of EBSA. Employers and workers can reach the Chicago office at 312.353.6976 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement 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. Beevers
Civil Action No. 06C2147

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976