U.S. Labor Department obtains settlement with Lansing, Michigan, business officers to restore 401(k) assets

Archived News Release — Caution: Information may be out of date.

Lansing, Michigan – The U.S. Department of Labor has obtained a settlement requiring restoration of $4,200 to the Omnitec Architectural Specialties Inc. 401(k) plan and permanently barring the trustees of the Lansing-based plan from service as fiduciaries to any employee benefit plans governed by the Employee Retirement Income Security Act.

“The Labor Department will act when plan fiduciaries violate their duty to protect retirement plan assets held for participants,” said Joseph Menez, director of the department’s Employee Benefits Security Administration (EBSA) regional office in Cincinnati.

The department’s settlement resolves a lawsuit that alleged Allen Christian, company president, and Peggy Christian, the plan’s secretary and treasurer, failed to remit to the 401(k) contributions of employees for the period between January 2001 and July 11, 2003. The judgment, issued in federal district court in Michigan, also requires the appointment of an independent fiduciary to manage the plan.

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.

This suit resulted from an investigation conducted by EBSA’s Cincinnati District Office. Employers and workers can reach the agency’s Cincinnati regional office at 859.578.4680 or toll-free number 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. Christian
Civil Action Number 1:06cv00752

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Archived News Release — Caution: Information may be out of date.