U.S. Labor Department Sues Owner of Akron, Ohio, Company to Restore Delinquent Contributions to Company’s 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Akron, Ohio - The U.S. Department of Labor has sued the owner of Truax Restoration Services, located in Akron, Ohio, for failing to forward employees’ voluntary contributions to the company’s 401(k) plan and to segregate the plan contributions from the company’s general assets.

“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 department’s Cincinnati regional office of the Employee Benefits Security Administration (EBSA).

The lawsuit alleges that Timothy Truax, a trustee of the plan, violated the Employee Retirement Income Security Act (ERISA) from December 2002 through August 2005 by failing to remit to the plan employee contributions deducted from the employees’ paychecks.

The suit seeks to require Truax to restore to the plan all contributions plus interest, remove him as plan fiduciary, and correct any prohibited transactions. The suit also asks that the court appoint an independent fiduciary to terminate the plan and distribute its assets to the participants and beneficiaries.

The suit 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. Truax)
Civil Action No. 5:06-cv-2488

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Archived News Release — Caution: Information may be out of date.

Contact Name: Scott Allen
Phone Number: 312.353.6976