U.S. Labor Department Sues to Recover Assets for Huntersville, N.C., Company’s 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Atlanta - The U.S. Department of Labor has sued to restore more than $5,200 in assets to the 401(k) plan of Vinson Van Go, a Huntersville, North Carolina, transportation company. The lawsuit charges the company and the trustee of its retirement plan with failing to transmit all employee contributions to the 401 (k) plan and commingling the contributions with the company’s general assets.

Filed in U.S. District Court in Charlotte, the suit alleges that the company and Gregory Vinson, a primary shareholder and trustee of the company’s 401(k) plan, violated the Employee Retirement Income Security Act (ERISA) between January and December 2001.

“Trustees of a 401(k) plan have a responsibility to ensure that the assets of the plan are used solely to benefit participants,” said Howard Marsh, director of the department’s Atlanta regional office of the Employee Benefits Security Administration (EBSA).

The suit seeks a court order requiring the defendants to restore $5,270, plus interest and lost earnings, to the plan. The department is also asking the court to bar Vinson from future service as a fiduciary to ERISA plans and appoint a successor fiduciary to administer the plan and distribute proceeds to participants.

The company’s 401(k) plan was established in October 1998 and permitted employees to contribute through payroll deductions. As of June 15, 2006, the plan had eight participants and assets of $14,470.

Employers and workers can reach the EBSA regional office in Atlanta at 404.562.2156 or toll-free at 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 vs. Vinson Van Go, LLC.)
Civil Action File Number 3:06-cv-00499

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Archived News Release — Caution: Information may be out of date.

Contact Name: Dan Fuqua
Phone Number: 404.562.2078