U.S. Labor Department Sues to Restore Assets Owed to SIMPLE IRA Plan of Former Newberry, South Carolina, Company

Archived News Release — Caution: Information may be out of date.

Atlanta - The U.S. Department of Labor has sued the former owner of ArctiChill Inc., Newberry, South Carolina, to recover more than $12,700 in delayed and missing employee contributions owed to the company’s SIMPLE IRA plan.

“The department will act when plan officials fail to carry out their duty to protect the assets held to pay benefits to plan participants,” said Howard Marsh, director of the department’s regional office in Atlanta of the Employee Benefits Security Administration (EBSA).

The lawsuit alleges that Marvin R. Wheaton, former company owner and president, violated the Employee Retirement Income Security Act (ERISA) from January 2001 through April 2002. He allegedly failed to timely remit to the plan $12,745 in contributions deducted from workers’ paychecks.

Filed in federal district court in Greenville, South Carolina, the suit seeks an order requiring Wheaton to restore all outstanding contributions plus lost earnings owed to the plan and to permanently bar him from serving as a fiduciary for any plan covered by ERISA. The department is also asking the court to appoint a successor fiduciary to administer the plan and distribute assets to participants and beneficiaries.

While it was in business, ArctiChill manufactured refrigeration equipment. When the company was dissolved in 2003, the SIMPLE IRA plan had 15 participants.

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 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.

(Chao v. ArctiChill, Inc. and Marvin R. Wheaton)
Civil Action No. 8:06-cv-03636-GRA

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Archived News Release — Caution: Information may be out of date.