U.S. Labor Department Obtains Judgment Restoring More Than $150,000 to Denver Profit Sharing Plan

Archived News Release — Caution: Information may be out of date.

Denver, Colorado - The former owners of Vancol Industries Inc. of Denver must pay more than $150,000 to the company’s profit sharing plan as restitution for improper loans made from the plan to the company’s owners, plan participants and affiliated companies, according to a consent judgment obtained by the U.S. Department of Labor.

A manufacturer and distributor of soft drinks and sport beverages, Vancol sponsored the plan for approximately 76 participants. The profit sharing plan had no assets as of August 24, 2006.

“Corporations and executives who are plan fiduciaries have a duty to protect the retirement assets of participants,” said Ann L. Combs, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). “We will aggressively enforce the law to ensure that workers receive their promised benefits.”

Under the judgment, former co-owners Robert E. Yates Jr. and Renald R. Berggren were ordered to repay $150,553 to the plan and permanently barred from service to any plan governed by the Employee Retirement Income Security Act (ERISA) in the future. Entered in U.S. District Court for the District of Colorado, the judgment removes Yates as plan trustee and appoints an independent fiduciary to manage the plan, collect the restitution and terminate the plan. Benefits will be distributed to all eligible participants except Yates and Berggren.

The department’s suit, filed August 28, 2006, alleged that Yates and Berggren violated ERISA when they made loans with plan assets to themselves that were never repaid and approved loans to business affiliates of the company and plan participants that were not fully repaid to the plan.

The suit resulted from an investigation by EBSA's Kansas City regional office. Employers and workers can reach the 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 Circle Berggren)
Civil Action Number: 1:06-cv-01715 LTB

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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

Contact Name: Peter Hong/Gloria Della
Phone Number: 202.693.4676/202.693.8664