U.S. Labor Department sues fiduciary of Fenton, Michigan company to recover 401(k) assets

Archived News Release — Caution: Information may be out of date.

Fenton, Michigan – The U.S. Department of Labor has sued the owner and 401(k) plan fiduciary of Control Pak International Inc. in Fenton for improperly using 401(k) assets withheld from employees’ pay to benefit the company in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that in various periods from January 2001 through July 11, 2003, Timothy Glinke, president and owner of Control Pak, retained participant contributions intended for the 401(k) plan. The Labor Department seeks to recover all assets owed to the 401(k) accounts and has asked the court to order Glinke to obtain a fidelity bond and keep it active until such time as the plan is terminated.

“The department helps workers get their benefits when plan assets are either misused or plans are abandoned,” said Joseph Menez, director of the department’s Cincinnati Regional Office of the Employee Benefits Security Administration (EBSA), which investigated the case.

The suit, filed in federal district court in Detroit, resulted from an investigation conducted by EBSA’s Cincinnati Regional Office. Employers and workers can reach the Cincinnati office at 859.578.4680 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.

Chao v. Timothy Glinke
Civil Action Number: 2:08-cv-11528

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Archived News Release — Caution: Information may be out of date.