U.S. Labor Department sues officer of Mequon, Wisconsin, travel service to recover contributions to company 401(k) plan

Archived News Release — Caution: Information may be out of date.

Mequon, Wisconsin – The U.S. Department of Labor has sued David Belfus, who operated as Your World Travel Services in Mequon, for failing to remit employee contributions to the company-sponsored 401(k) plan and co-mingling those funds with assets of the company.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Steven Haugen, director of the department’s Employee Benefits Security Administration (EBSA) Chicago Regional Office.

The lawsuit alleges that Belfus, as the plan fiduciary and sole owner of the travel service, violated the Employee Retirement Income Security Act by failing to remit and segregate employee contributions deducted from workers’ paychecks that were owed to the plan. Violations are alleged to have occurred from January through March 2005. The suit seeks to require that all contributions plus interest be restored to the 401(k) accounts.

Employers with similar problems who are not yet the subjects of EBSA investigations may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation 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, see www.dol.gov/ebsa.

Employers and workers can reach EBSA’s Chicago Regional Office at 312.353.0900 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. Belfus
Civil Action Number 07-C-0737.

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Archived News Release — Caution: Information may be out of date.