U.S. Labor Department secures 401(k) plan assets for Merchants Publishing Co. employees in Kalamazoo, Michigan

Archived News Release — Caution: Information may be out of date.

Kalamazoo, Michigan – A federal district court in Grand Rapids, Michigan has granted a consent judgment to the U.S. Department of Labor that allows more than $170,000 in 401(k) assets recovered in a criminal action to be distributed to former workers of Merchants Publishing Co. Inc. in Kalamazoo.

The court action resolves the department’s lawsuit against the company and plan trustees M. Jack Fleming and Carol Fleming. The suit alleged that the Flemings failed to remit employee contributions and loan repayments deducted from workers’ paychecks to the 401(k) plan from June 2000 to March 2006, in violation of the Employee Retirement Income Security Act (ERISA). The suit also alleged that the Flemings improperly received transfers of plan assets.

The court appointed an independent fiduciary to distribute plan assets to participants and beneficiaries. Including the $170,000 recovered as a result of a prosecution by the U.S. Attorney’s office in Grand Rapids, the total 401(k) assets to be distributed to eligible participants and beneficiaries exceed $650,000.

“The hardworking men and women of Merchant Publishing relied on the plan trustees to protect their 401(k) benefits,” said Bradford P. Campbell, assistant secretary of the Labor Department’s Employee Benefits Security Administration (EBSA). “Our legal action sends a clear message that plan fiduciaries will be held accountable when they fail to protect the retirement plan assets held on behalf of participants.”

The suit resulted from an investigation conducted by the Detroit district of EBSA’s Cincinnati Regional Office. Employers and workers can reach the regional 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. Fleming
Civil Action Number: 4:06cv0117

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Archived News Release — Caution: Information may be out of date.