U.S. Department of Labor sues Bismarck, North Dakota, company and owners over delinquent 401(k) contributions

Archived News Release — Caution: Information may be out of date.

Bismarck, North Dakota – The U.S. Department of Labor has sued LAS International of Bismarck and its owners for failing to forward $39,866.18 in delinquent employee and employer contributions, and to timely remit employee contributions and loan repayment to the company’s 401(k) retirement savings plan.

“The Labor Department is committed to protecting the benefits of America’s workers and retirees, and will hold accountable those who misuse workers’ retirement assets,” said Steven Eischen, director of the Kansas City Regional Office of the department’s Employee Benefits Security Administration (EBSA).

The lawsuit alleges that LAS International, Neil Whittey and Syver Vinje violated the Employee Retirement Income Security Act when they failed to forward mandatory employer contributions, employee contributions and loan repayments owed to the plan for 2004 and 2005. The suit alleges that the defendants used the assets for their benefit.

As relief, the suit asks the court to require the defendants to restore all losses and foregone earnings, and require Whittey and Vinje to waive any rights to their 401(k) accounts in order to offset any losses owed to the plan.

LAS International manufactures wastewater treatment systems and equipment. As of December 2006, the latest data available, the 401(k) plan covered 32 participants and had $144,749 in assets.

This case resulted from an investigation conducted by EBSA’s office in Kansas City, Missouri. Employers and workers can reach EBSA’s Kansas City office at 816.285.1800 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. LAS International
Civil Action Number 1:08-cv-098

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Archived News Release — Caution: Information may be out of date.