U.S. Labor Department obtains court order restoring assets to Charlotte, North Carolina based Federal Textile Engravers profit-sharing plan

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has obtained a default judgment in U.S. District Court for the Western District of North Carolina requiring Federal Textile Engravers of Charlotte, North Carolina, and its president and majority stockholder to restore $13,150 to the company’s profit-sharing plan.

“The Labor Department will not hesitate to step in to protect employees’ rights when it sees that companies are failing in their fiduciary responsibilities,” said Howard Marsh, director of the Atlanta Regional Office of the department’s Employee Benefits Security Administration (EBSA).

The judgment resolved a lawsuit filed by the department in 2006, alleging that the company diverted a portion of the plan’s assets in violation of the Employee Retirement Income Security Act (ERISA).

The court removed Federal Textile Engravers and Mario Medina as fiduciaries of the plan and barred them from future service as fiduciaries to any plan covered by ERISA. An independent fiduciary was appointed to oversee the plan’s assets for its 14 participants. Federal Textile Engravers is engaged in the business of textile engraving and screen printing.

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 reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans.

Chao v. Federal Textile Engravers Inc.
Civil Action File Number 3:06-cv-00274-GCM

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Archived News Release — Caution: Information may be out of date.