U.S. Department of Labor sues defunct Atlanta software consulting company to protect 401(k) plan participants

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has sued Computer Consulting Services Corp. in Atlanta and two fiduciaries to recover assets on behalf of the company’s 401(k) plan participants.

Filed in the U.S. District Court for the Northern District of Georgia, the lawsuit alleges that the company, Andries Stephen Botes and Peter Steyn failed to discharge their fiduciary duties to the plan in violation of the Employee Retirement Income Security Act (ERISA).

The suit alleges that Computer Consulting Services, the plan sponsor, failed to remit contributions and plan loan payments withheld from employees’ wages for plan years 2005 to 2006. The suit seeks to recover $18,419 in unpaid employee contributions and participant loan payments of $3,184 plus lost interest on amounts owed to the plan. In addition, the suit asks the court to offset the plan account balance of any defendant to repay the losses owed to the plan.

The department also asks the court to permanently bar the defendants from serving in a fiduciary capacity to any employee benefit plan governed by ERISA. Under a previous court order, Botes was removed as a fiduciary of the plan and is barred for at least 13 years from serving as a fiduciary to any ERISA-covered plans as a result of a 2006 criminal conviction in an unrelated case. In November 2007, the court appointed independent fiduciary Larry LeFoldt to manage the plan.

“The Labor Department is pursuing this case in order to protect employees who are counting on these assets for their retirement,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration (EBSA), which investigated this case.

Computer Consulting Services is a former software consulting company. In June 2007, the company’s 401(k) plan had approximately $874,377 in assets and covered 34 plan participants, the latest data available.

Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 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. For more information see www.dol.gov/ebsa.

Chao v. Botes
(Civil Action File Number 1:08-cv-3668)

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.