U.S. Labor Department sues fiduciary of Adtech Systems in San Antonio to recover 401(k) assets

Archived News Release — Caution: Information may be out of date.

San Antonio – The U.S. Department of Labor has sued the owner of defunct Adtech Systems Inc. in San Antonio for improperly using 401(k) assets withheld from employees’ pay to benefit the company in violation of the Employee Retirement Income Security Act.

The department’s lawsuit alleges that from April through November 2005, Eilert Richard Weitzel II, president and owner of Adtech Systems, failed to forward to the company’s 401(k) plan employee contributions deducted from their paychecks. The Labor Department seeks to recover all assets plus interest owed to the plan, correct any prohibited transactions and terminate the plan after all assets are disbursed to eligible participants.

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

Adtech provided communications and information systems and technologies for federal, state and local governments as well as commercial customers. The company ceased operations in September 2006 due to financial difficulties.

The suit was filed in federal district court in San Antonio. Employers and workers can reach EBSA’s Dallas Regional Office at 972.850.4500 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. Eilert Richard Weitzel II
Civil Action Number: 5:08-cv-719

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Archived News Release — Caution: Information may be out of date.