U.S. Department of Labor sues to appoint independent fiduciary for former Atlanta general contractor’s 401(k) profit-sharing plan

Atlanta – The U.S. Department of Labor has sued A.L. Johnson Co. and its chief executive officer, Artis L. Johnson, to appoint a new independent fiduciary of the company’s 401(k) profit-sharing plan and recover more than $60,171 in assets.

The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, alleges that the defendants violated the Employee Retirement Income Security Act (ERISA) in 2003, 2004 and 2005.

The defendants allegedly violated their fiduciary responsibilities when they withheld $36,099 in employee contributions to the company’s 401(k) profit-sharing plan but failed to forward the contributions to the plan. An additional $19,423 in employee loan payments were withheld but not forwarded to the plan. The defendants also failed to collect and forward to the plan $4,649 in employer matching contributions.

Besides removing A.L. Johnson Co. and Artis Johnson as fiduciaries of the plan and appointing a new fiduciary, the suit asks the court to bar the defendants from serving as fiduciaries of any plan subject to ERISA and require them to restore plan losses including lost earnings.

“When an employer creates an ERISA-covered retirement plan, it is making a promise to its workers. If the employer fails in that promise, the Labor Department will act to protect the interests of the plan participants,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration (EBSA) office in Atlanta.

A. L. Johnson Co. was a general construction contractor located in Atlanta but has ceased operations.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. 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.

Secretary of Labor v. Artis L. Johnson
(Civil Action Number 1:09-CV-0316)

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.