U.S. Labor Department takes legal action against trustee of AE Seven LLC 401(k) plan for failure to administer employee assets

Archived News Release — Caution: Information may be out of date.

Greenwood Village, Colorado – The U.S. Department of Labor has sued the trustee of the AE Seven LLC 401(k) plan in Greenwood Village for failure to properly administer the company’s 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA).

The lawsuit, filed in the U.S. District Court for the District of Colorado, alleges that the defendant has failed to take fiduciary responsibility for the operation and administration of the plan since August 2007. As relief, the suit asks the court to remove Tracy Podgorak-Miller from her position as a trustee, and appoint an independent trust company to administer the plan and distribute assets to participants and beneficiaries.

“The Labor Department is committed to protecting workers’ benefits when plan assets are either misused or the plans are abandoned,” said Steve Eischen, director of the department’s Employee Benefits Security Administration (EBSA) Kansas City Regional Office.

Tracy Podgorak-Miller was the majority shareholder of AE Seven LLC and Abiouness, Cross & Bradshaw, architectural engineering firms that ceased operations in August 2007. At that time the plan had approximately $205,739 in assets and 14 participants.

The suit resulted from an investigation conducted by EBSA’s Kansas City office. In fiscal year 2007, the agency achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach the regional office at 816.285.1800 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

Chao v. Tracy Podgorak-Miller & AE Seven LLC 401(k) Plan
Civil Action Number 08-cv-01958

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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