U.S. Labor Department Obtains Judgment Removing 401(k) Trustee and Appointing Independent Fiduciary to Manage Plan

Archived News Release — Caution: Information may be out of date.

Atlanta - The U.S. Department of Labor today announced court orders appointing M. Larry Lefoldt of Ridgeland, Mississippi, to manage and terminate the 401(k) plan of Computer Consulting Services Co. in Atlanta and ordering the plan’s trustee to cooperate in transferring plan management to the independent fiduciary.

The court order resolves a lawsuit seeking to remove Andries Stephan Botes as a plan fiduciary after his conviction on criminal charges of embezzlement and wire fraud. The Employee Retirement Income Security Act (ERISA) bars anyone convicted on criminal charges from service as fiduciaries to any employee benefit plan for at least 13 years.

Under the court order, Botes must cooperate in providing information on the whereabouts of any 401(k) assets and to turn over records of the plan.

Computer Consulting Services is a software consulting firm that has recently ceased its business operations. Botes was the chief executive officer, chief financial officer and secretary of the company. The plan covered as many as 35 participants and had assets totaling over $800,000 as of September 30, 2006.

The case resulted from an investigation conducted by the Atlanta regional office of the Labor Department’s Employee Benefits Security Administration (EBSA). In fiscal year 2005, EBSA achieved record monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can reach the Atlanta office at 404.562.2156. Help with problems relating to private-sector retirement and health plans can also be obtained by calling EBSA’s toll-free number, 1.866.444.EBSA (3272).

(Chao v. Computer Consulting Services 401(k) Plan)
Civil Action No. 1:06-CV-2462

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Archived News Release — Caution: Information may be out of date.

Contact Name: Gloria Della/Peter Hong
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