U.S. Labor Department obtains settlement with Elgin, Illinois business owner to restore 401(k) profit-sharing funds

Archived News Release — Caution: Information may be out of date.

Elgin, Illinois – The U.S. Department of Labor has obtained a settlement restoring $14,033 owed to the Airtronics Gage & Machine Co. 401(k) Profit-Sharing Plans as restitution for losses resulting from violations of the Employee Retirement Income Security Act (ERISA). The 401(k) plan was sponsored by the Air Gage Co. and Airtronics Gage & Machine Co. in Elgin.

The companies and Jeffrey Danner, a fiduciary of the plan, agreed to restore the assets. The department sued the defendants for allegedly failing to remit to the plan contributions and loan repayments deducted from employees’ paychecks at various times between 2007 and February 2008. They also allegedly remitted employee contributions late during the period from 2001 through 2006. Those assets were retained in the general assets of the two companies.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Steve Haugen, director of the department’s Chicago Regional Office of the Employee Benefits Security Administration (EBSA).

Employers with similar problems, who are not yet the subject of an investigation by EBSA, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information about the VFCP, see www.dol.gov/ebsa.

This suit resulted from an investigation conducted by EBSA’s Chicago Regional Office. Employers and workers can reach the Chicago office at 312.353.0900 or through EBSA’s toll-free number, 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. Airtronics
Civil Action Number 1:08-cv-04406

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Archived News Release — Caution: Information may be out of date.