U.S. Labor Department sues fiduciary of Frankfort, Ill.-based company to recover 401(k) assets

Archived News Release — Caution: Information may be out of date.

FRANKFORT, Ill. – The U.S. Department of Labor has sued the owner and 401(k) plan fiduciary of J&L Electronic Service Inc. for improperly using 401(k) contributions deducted from employees' paychecks to benefit the company in violation of the Employee Retirement Income Security Act (ERISA).

The department's lawsuit alleges that at various times from 2003 to 2005, John Patrizi, the company's president and owner, retained participant contributions intended for the 401(k) plan. The department's suit seeks to recover all assets owed to the 401(k) and to require that Patrizi secures a fidelity bond and keeps it active until such time as the plan is terminated.

"It is a top priority of this agency to secure workers their benefits when plan assets are either misused or the plans are abandoned," said Steve Haugen, director of the department's Chicago Regional Office of the Employee Benefits Security Administration (EBSA), which conducted the investigation.

The suit was filed in federal district court in Chicago.

Employers and workers can reach EBSA's Chicago office at 312-353-0900 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. J&L Electronic Service Inc.
Civil Action Number 08-cv-6638

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Archived News Release — Caution: Information may be out of date.