U.S. Labor Department sues Rosewood, Minnesota business owner to recover health plan contributions for employees

Archived News Release — Caution: Information may be out of date.

Roseville, Minnesota – The U.S. Department of Labor has sued the president and sole owner of Plywood Industries Inc. in Roseville, for failing to forward to the company’s health plan contributions withheld from employees’ paychecks, in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that from January 2006 through July 20, 2007, company president and owner Catherine Ellingen caused the company to retain employees’ health contributions and use the assets to fund ongoing corporate operations. The department is seeking repayment of the contributions plus interest, and to permanently bar Ellingen from servicing as a fiduciary to any other employee benefit plan subject to ERISA.

“This department is committed to helping workers get their benefits when plan assets are either misused or not quickly forwarded to the appropriate accounts,” said Steve Eischen, director of the department’s Employee Benefits Security Administration (EBSA) regional office in Kansas City, Mo.

The suit, filed in federal district court in Minneapolis, Minnesota was investigated by EBSA’s Kansas City Regional Office. Employers and workers can reach the office at 816.285.1800 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. Ellingen
Civil Action Number 08-cv-02170

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Archived News Release — Caution: Information may be out of date.