U.S. Labor Department recovers funds owed to Toledo-based Tana Corp. retirement savings plan

Archived News Release — Caution: Information may be out of date.

Toledo, Ohio – The U.S. Department of Labor has obtained a consent judgment restoring more than $25,000 owed to the retirement savings plan of Tana Corp. in Toledo as resolution of its lawsuit against the company and plan fiduciary Sharon Scherkoske.

The suit alleged the defendants improperly used funds intended for an employee retirement savings plan for the benefit of the company in violation of the Employee Retirement Income Security Act (ERISA).

“The department will not hesitate to act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Joseph Menez, director of the Cincinnati Regional Office of the department’s Employee Benefits Security Administration (EBSA). “Protecting workers’ benefits is a top priority for this administration.”

The department’s suit alleged that plan fiduciary Scherkoske failed to segregate, remit and timely forward employee contributions and loan repayments to the retirement savings plan and used the funds for the company’s benefit beginning in January 2002. As of December 31, 2006, the plan had 18 participants, the latest data available.

The judgment, entered in federal district court in Toledo, resulted from an investigation conducted by EBSA’s Cincinnati Regional Office. Employers and workers can reach the 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. Sharon Scherkoske
Civil Action Number 3:07cv3408

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Archived News Release — Caution: Information may be out of date.