U.S. Labor Department Sues Virginia Company For Pension Plan Violations

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - The U.S. Department of Labor sued Javis Automation & Engineering, Inc., Dumfries, Virginia, and its president, John W. Long, Sr., for failure to remit contributions deducted from employees’ paychecks to the company’s 401(k) profit sharing plan.

The lawsuit alleges that the company, Long Sr., John W. Long, Jr. and Erick McKinley violated the Employee Retirement Income Security Act (ERISA) when they failed to forward or timely remit plan contributions deducted from employees’ paychecks from January 2001 through June 2004.

“This legal action should put employers and plan sponsors on notice that we will not hesitate to enforce the law to ensure that workers receive the benefits to which they are entitled,” said Mabel Capolongo, regional director of the department’s Philadelphia office of the Employee Benefits Security Administration (EBSA).

Filed in U.S. District Court for the Eastern District of Virginia in Alexandria, the suit seeks a court order to remove the company and the individual defendants as plan fiduciaries; to require them to restore any losses to the plan plus lost opportunity costs; and to appoint an independent fiduciary to terminate the plan. The department’s suit also asks that the defendants be permanently barred from serving as fiduciaries to any plan in the future.

The suit resulted from an investigation conducted by EBSA’s Washington district office. Employers and workers needing help with problems related to private-sector retirement and health plans can reach the Washington district Office at 301.713.2000 or call EBSA’s toll-free number, 1.866.444.EBSA (3272).

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. Information on EBSA is available from the agency’s website www.dol.gov/ebsa.

(Chao v. Long)
Civil Action No. 1:06 cv 1029

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Archived News Release — Caution: Information may be out of date.

Contact Name: Kate Dugan
Phone Number: 215.861.5101