U.S. Department of Labor Sues Officers of Kalamazoo, Michigan Business To Restore Funds to Company’s Retirement Savings Plan

Archived News Release — Caution: Information may be out of date.

Kalamazoo, Michigan - The U.S. Department of Labor has sued M. Jack Fleming and Carol Fleming, trustees of the Merchants Publishing Co. Inc., for failing to forward employee contributions to the company’s 401(k) profit sharing plan, co-mingling plan contributions with the general operating assets of the company, and other violations of federal employee benefits law.

The lawsuit alleges that the Flemings failed to remit employee contributions and loan repayments deducted from workers’ paychecks to the 401(k) plan from January 2003 through March 2006, in violation of the Employee Retirement Income Security Act (ERISA). The suit also alleges that M. Jack Fleming improperly received a transfer of $68,945 from the plan and that $42,322 was transferred from the plan to Carol Fleming.

“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 department’s Employee Benefits Security Administration (EBSA).

The suit seeks to require the Flemings to restore to the plan all contributions plus interest, remove them as plan fiduciaries, and correct any prohibited transactions. The suit also asks that the court appoint an independent fiduciary to oversee the plan.

The suit resulted from an investigation conducted by the Detroit district of EBSA’S Cincinnati regional office. Employers and workers can reach the regional office at 859.578.4680 or through the 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. Fleming)
Civil Action No. 4:06cv0117

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976