U.S. Labor Department sues Charlotte, North Carolina, corporation and president to recover more than $69,000 in 401(k) plan assets

Archived News Release — Caution: Information may be out of date.

Atlanta - The U.S. Department of Labor has sued Charlotte, North Carolina-based Norcom Development Inc. and its president, Thomas A. Norman, to restore $69,324 in delayed and delinquent employee contributions owed to the company’s 401(k) profit-sharing plan.

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

The lawsuit, filed in federal district court in Charlotte, North Carolina, alleges that the defendants violated the Employee Retirement Income Security Act when they failed to remit employee contributions and matching employer contributions to the plan between January 2000 and December 2004. The defendants also illegally co-mingled the contributions with the general assets of the company.

The suit seeks a court order to require that the defendants restore $69,324 plus interest and appoint an independent fiduciary to oversee the plan.

Norcom Development is a commercial real estate development firm. The company’s 401(k) plan covered five participants and held approximately $122,600 in assets as of January 2006.

The case resulted from an investigation conducted by EBSA’s Atlanta 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 can contact the Atlanta office at 404.562.2156 or toll free at 1.866.444.EBSA (3272) for help with problems relating to private sector pension and health plans.

(Chao v. Norcom Development, Inc.)
Civil Action No. 3:07-cv90-K)

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Archived News Release — Caution: Information may be out of date.