Labor Department Sues Columbus, Ohio Business and Officers To Restore Delinquent Contributions to Company’s Retirement Savings Plans

Archived News Release — Caution: Information may be out of date.

Columbus, Ohio - The U.S. Department of Labor has sued Team America Corporation, Columbus, Ohio and three individuals who served as fiduciaries to the company’s retirement savings, health and disability programs for failing to forward employee and employer contributions to the plans and to segregate plan contributions from the general operating assets of the company.

The lawsuit alleges that Steven Cash Nickerson, Ted Crawford and Andrew Johnson violated the Employee Retirement Income Security Act (ERISA) while serving as fiduciaries to a series of employee benefit plans. The defendants allegedly failed to remit employee and employer contributions to the plans during a three month period in 2003, even though assets were deducted from workers’ paychecks. Team America provided retirement savings plans as well as long-term disability, and cafeteria-style health benefit plans and insurance for the employees of client employers under a multiple employer welfare arrangement.

“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 Joseph Menez, director of the Cincinnati regional office of the Labor Department’s Employee Benefits Security Administration (EBSA).

The suit seeks to require Team America and the three individuals to restore all contributions plus interest. The suit also seeks to permanently bar Nickerson, Crawford and Johnson from serving as plan fiduciaries or service providers to any ERISA-covered plan, and correct any prohibited transactions.

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 make workers whole 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 Ohio, resulted from an investigation conducted by the Cincinnati regional office of EBSA. Employers and workers can reach the regional office at 859.578.4680 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. Team America
Civil Action No. 2:06cv786

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976