U.S. Labor Department obtains consent judgment against president of Control Pak International over misuse of $19,000 in 401(k) assets

Archived News Release — Caution: Information may be out of date.

Fenton, Michigan – The U.S. Department of Labor has obtained a consent judgment against the president of Control Pak International in Fenton, providing restoration of $19,165 to the company’s 401(k) savings plan as restitution for misuse of 401(k) assets in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit resolved by this judgment alleged that, from January through November 2001, Timothy Glinke, president and owner of Control Pak International, failed to timely remit employee contributions to their 401(k) plan. From December 2001 through July 2003, Glinke also failed to remit the employee contributions, instead using those contributions for the company’s general operating expenses.

“The department will take appropriate legal action when plan fiduciaries fail to carry out their duty to properly protect the retirement assets held on behalf of participants,” said Paul Baumann, acting director of the department’s Cincinnati Regional Office of the Employee Benefits Security Administration (EBSA), which investigated the case.

Employers with similar problems who are not yet the subjects of investigations 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.

The judgment was entered in the U.S. District Court for the Eastern District of Michigan. Employers and workers can reach EBSA’s Cincinnati 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. Timothy Glinke
Civil Action Number: 2:08-cv-11528

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Archived News Release — Caution: Information may be out of date.