Roswell, Georgia, Company and CEO Ordered to Restore More Than $27,000 to 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Atlanta, Georgia - The U.S. Department of Labor has obtained a consent judgment ordering Commetrex Corp., Roswell, Georgia, and CEO Michael Coffee to restore $27,452 to the company’s 401(k) plan.

“Those entrusted to manage employee benefit plans are required to do so in a careful manner and solely for the benefit of participants,” said Howard Marsh, director of the Atlanta regional office of the department’s Employee Benefits Security Administration (EBSA).

In its lawsuit, the department alleged that Commetrex and Coffee, the 401(k) plan fiduciary, violated the Employee Retirement Income Security Act (ERISA) between January 2000 and March 2006. The defendants allegedly failed to segregate employee plan contributions from company assets and to forward those contributions to the plan in a timely manner.

Entered in U.S. District Court in Atlanta, the judgment requires the defendants to restore the contributions to the plan. The money is to be allocated to the accounts of plan participants and beneficiaries.

Commetrex develops telecommunications software and provides engineering and consultation services. The company-sponsored 401(k) plan had 14 participants and assets totaling $140,516 as of December 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, see www.dol.gov/ebsa.

The suit resulted from an investigation by EBSA’s Atlanta regional office. Employers and workers can contact the regional 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 pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Commetrex Corp.)
Civil Action No. 1:06-CV-01548-BBM

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Archived News Release — Caution: Information may be out of date.

Contact Name: Dan Fuqua
Phone Number: 404.562.2078