U.S. Labor Department Sues Cincinnati-Based Restaurant Group to Restore Delinquent Contributions to 401(k) Savings Plans

Archived News Release — Caution: Information may be out of date.

Cincinnati - The U.S. Department of Labor has sued Cincinnati-based Queen City Restaurant Group and the trustee of 401(k) plans sponsored by the business for allegedly failing to forward and remit employee contributions in a timely manner to the plans of three companies managed by the restaurant group.

The suit alleges that Queen City Restaurant Group, formerly known as Queen City Brewing Co., and plan trustee Vincent Bryant violated the Employee Retirement Income Security Act (ERISA). Queen City Restaurant Group and Bryant allegedly failed to remit employee contributions to the retirement savings plans of Queen City Restaurant Group, Watson Brothers Bistro and Brewery and Tellers of Hyde Park LTD, and failed to remit contributions on time between January 2001 and March 2006. Bryant was the president and CEO of the restaurant group when the alleged improper transactions occurred.

The suit seeks to require plan fiduciaries to restore to the plan all employee contributions as well as lost opportunity costs, to remove the plan fiduciaries, and to correct any prohibited transactions.

“The department will take appropriate legal action 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 regional office in Cincinnati of the Employee Benefits Security Administration (EBSA).

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 U.S. District Court for the Southern District of Ohio, resulted from an investigation conducted by the Cincinnati regional office of EBSA. Employers and workers can reach the Cincinnati 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. Bryant)
Civil Action No. 1:06-cv-861

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Archived News Release — Caution: Information may be out of date.

Contact Name: Scott M. Allen
Phone Number: 312.353.6976