Connecticut employer and 401(k) plan trustee agree to restore employee contributions to resolve U.S. Labor Department lawsuit

Archived News Release — Caution: Information may be out of date.

Hartford, Connecticut – American Air Tool Enterprises LLC of Centerbrook, Connecticut, and Scott Saunders, trustee to the company’s 401(k) plan, have agreed to restore $18,286.51 plus interest to the plan to settle a lawsuit filed by the U.S. Department of Labor alleging violations of the Employee Retirement Income Security Act (ERISA).

The suit, filed in the U.S. District Court for the District of Connecticut in Hartford, alleged that the company and Saunders failed to forward to the plan contributions deducted from employee paychecks. The American Air Tool Enterprises LLC 401(k) Profit Sharing Plan provides retirement benefits for company employees. The Employee Benefits Security Administration’s Boston Regional Office, which investigated the case, enforces ERISA requirements to protect private sector employee benefit plans.

James Benages, regional director for EBSA in Boston, said, “These defendants failed to discharge their fiduciary duties to the plan and its participants. The funds of employee benefit plans are to be used for the sole benefit of plan participants and beneficiaries, and not for the benefit of the company that sponsors the plan.”

A consent judgment obtained by the department also orders the defendants to ensure that each of the plan’s participants receives his or her respective share of the restitution made to the plan.

Employers and workers can reach EBSA at 617.565.9600 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Additional information can be found at www.dol.gov/ebsa.

Chao v. American Air Tool Enterprises LLC
Civil Action Number 3:08-CV-409

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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