U.S. Labor Department obtains consent judgment restoring more than $100,000 to Orlando, Florida-based ZHA Inc. 401(k) plan

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has obtained a consent judgment and order requiring that Orlando, Florida-based ZHA Inc. and company officials Richard Zipperly and Wendy Roby restore $100,817 to the company’s 401(k) plan.

“Individuals entrusted with retirement plan assets cannot use those funds to benefit themselves,” said Bradford P. Campbell, assistant secretary for the Labor Department’s Employee Benefits Security Administration (EBSA). “Our legal action restores assets to pay the future retirement benefits of these ZHA workers.”

The consent order, entered in the U.S. District Court for the Middle District of Florida, resolves the department’s lawsuit alleging that the defendants diverted employees’ contributions intended for ZHA Inc.’s 401(k) plan for the benefit of the company in violation of the Employee Retirement Income Security Act (ERISA).

The court has removed ZHA Inc., Zipperly, and Roby as fiduciaries of the plan and barred Zipperly from future service as fiduciary to any plan covered by ERISA.

ZHA Inc. is a consulting firm specializing in construction projects. According to the latest data available, the company’s 401(k) plan had 66 participants and assets of more than $3.5 million.

The case was investigated by EBSA’s Atlanta Regional Office. Employers and workers can reach the 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. 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.ZHA Inc.
(Civil Action File Number 6:07-cv-1420-ORL-19KRS)

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Archived News Release — Caution: Information may be out of date.