U.S. Labor Department protects 401(k) plan assets of former American Systems Consulting Inc. employees in Dublin, Ohio

Dublin, Ohio – A federal district court in Columbus has granted the U.S. Department of Labor a consent judgment to distribute more than $600,000 in 401(k) assets owed to former workers of American Systems Consulting Inc. of Dublin.

Under the judgment, Larry Lefoldt was appointed as an independent fiduciary to terminate the plan after distributing plan assets to eligible participants and beneficiaries. The judgment resolves the department’s lawsuit against the company, Cliff Gallatin and Loree Gallatin to recover 401(k) plan assets that were improperly used for the benefit of the company. The Gallatins, former plan trustees and officers of the company, have paid $100,860 in delinquent employee contributions and lost opportunity costs owed to the plan.

“This case reaffirms our commitment to vigorously enforce federal benefits law,” said Bradford P. Campbell, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). “Our action today is designed to recoup assets to pay future retirement benefits of participants and their beneficiaries.”

The suit 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 number 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. Gallatin
Civil Action Number 2:08-cv-00019

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