U.S. Labor Department Sues Orlando, Florida, Corporation To Restore Losses to 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Atlanta, Georgia - The U.S. Department of Labor has sued Orlando-based IMDC Inc. and Gregory C. Mundy, fiduciary of the company’s 401(k) profit sharing plan, to recover lost benefits for plan participants.

“This action demonstrates our commitment to protect the hard-earned benefits of American workers,” said Howard Marsh, director of the Atlanta regional office of the department’s Employee Benefits Security Administration (EBSA).

The suit, filed in federal district court in Orlando, alleges that the defendants violated the Employee Retirement Income Security Act (ERISA) when they failed to remit employee contributions and loan repayments to the plan starting in January 2000. It further alleges that the defendants illegally used certain plan assets to pay company obligations.

The suit seeks a court order requiring the defendants to restore all contributions to the plan, with interest, and permanently barring Mundy from serving as a fiduciary for any employee benefit plan covered by ERISA. The suit also asks the court to appoint a successor fiduciary, at the expense of the defendants, to receive any funds recovered and distribute the proceeds to the plan or the participants.

IMDC is a civil engineering firm doing business in Orlando, Florida, and Birmingham, Alabama. The company’s 401(k) plan covered 12 participants and held approximately $135,693 in assets as of December 31, 2003.

The case resulted from an investigation conducted by the EBSA’s Atlanta regional office. 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 contact the EBSA regional office in Atlanta 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.

(Chao v. IMDC Inc.)
Civil Action No. 6:06-cv-01199-PCF-JGG

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Archived News Release — Caution: Information may be out of date.

Contact Name: Dan Fuqua
Phone Number: 404.562.2078