Former head of defunct Waitsfield, Vermont company to restore delinquent employee contributions to company SIMPLE IRA to resolve U.S. Labor Department lawsuit

Archived News Release — Caution: Information may be out of date.

Boston – The former head of defunct Third Sector Systems Inc., Waitsfield, Vermont, has agreed to restore nearly $7,000 in delinquent employee contributions owed to participants of the company’s retirement plan under a consent judgment obtained by the U.S. Department of Labor.

A lawsuit, filed in March 2007, alleged that Yves Gonnet, president and chief executive officer of the company (also known as Antaeus Inc.), violated the Employee Retirement Income Security Act (ERISA) when he failed to remit or timely forward employee contributions to the Antaeus Inc. Savings Incentive Match PLan for Employees individual retirement account (SIMPLE IRA) plan. He also allegedly failed to segregate these plan assets from those of the company. Third Sector Systems closed its doors in 2004.

The judgment, entered in the U.S. District Court for the District of Vermont, orders Gonnet to repay $6,816.65 to three plan participants and pay a civil penalty of $681.67 to the Labor Department. It also permanently bars him from service as fiduciary to any plan governed by ERISA in the future.

Said James Benages, director of the department’s Employee Benefits Security Administration (EBSA) Boston Regional Office: “As I said when we filed this suit, the law clearly states that plan assets are to be used only for the benefit of plan participants and beneficiaries. Employee contributions deducted from employee paychecks must be forwarded to the plan without delay.”

Employers with similar violations who are not yet the subjects of investigations 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, civil penalties and any applicable excise taxes. For more information see www.dol.gov/ebsa.

The investigation of this case was conducted by EBSA’s Boston Regional Office. Employers and workers can contact the Boston office at 617.565.9600 or toll-free at 866.444.3272 for help with any problems relating to private sector pension and health plans.

Chao v. Gonnet
Civil Action Number: 2:07-CV-00068-WKS

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Archived News Release — Caution: Information may be out of date.