Corona Web Design Firm Agrees To Repay Employees’ 401(K) Funds

Archived News Release — Caution: Information may be out of date.

San Francisco - The U.S. Department of Labor has reached a settlement with the Corona web design firm of WesTech Solutions Corp. and its president, Donald Cantral, to restore $14,883 owed to the company’s 401(k) plan.

The agreement settles a lawsuit filed by the department in which the restored assets will be allocated to the 20 former WesTech employees covered by the 401(k) plan.

The suit removes Cantral as a plan trustee and requires him to enroll in and pay for a five-year fiduciary training program approved by the Labor Department’s Employee Benefits Security Administration (EBSA) as a prerequisite to service as a plan fiduciary in the future. He must also cooperate with the independent fiduciary to distribute the restored funds and to pay the independent fiduciary’s expenses. In addition, Cantral must pay a civil money penalty equal to 20 percent of the funds owed to the plan.

“The law clearly requires those who administer employee benefit plans to do so in a careful, prudent and honest manner solely for the benefit of participants,” EBSA Los Angeles regional director Billy Beaver said. “Situations like this where promised benefits are never paid while employees' contributions continue to be collected are totally unacceptable.”

The Labor Department suit, filed in March 2005 in federal district court for the Central District of California-Eastern Division, alleged that Cantral and WesTech Solutions failed to remit employee contributions to the company’s 401(k) plan.

WesTech Solutions built and designed web-based computer system applications. The company was based in Riverside County but suspended operations in September 2002.

The department’s suit resulted from an investigation conducted by EBSA’s Los Angeles regional office. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers with questions or concerns regarding their private-sector pension and health plans can contact the EBSA regional office in Los Angeles at 626.229.1000 or EBSA’s toll free number, 1.866.444.EBSA (3272). Information is also available from the agency’s Web site at www.dol.gov/ebsa.

(Chao v. WesTech Solutions Corp.)
Civil Action No. EDCV05 – 0198-SGL

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