U.S. Department of Labor sues owner of defunct Hillsboro, Oregon, company to recover more than $147,000 in 401(k) retirement contributions

Portland, Oregon – The U.S. Department of Labor has sued Hans Van der Meer, president and owner of the defunct Parati Co. Inc. of Hillsboro, Oregon, a civil engineering company, to recover more than $147,679 in employee contributions owed to the company’s 401(k) retirement plan.

The lawsuit alleges that Van der Meer failed to forward employee contributions to the company’s 401(k) plan between April 14, 2006, and March 7, 2007. He also allegedly co-mingled employees’ contributions with accounts of the company in violation of the Employee Retirement Income Security Act (ERISA).

“These legal actions seek to protect the retirement security of workers by recovering 401(k) assets they set aside for their retired years and preserve their rights to recover retirement assets during the bankruptcy proceedings of the plan’s fiduciary,” said Alan D. Lebowitz, deputy assistant secretary of the Labor Department’s Employee Benefits Security Administration.

Van der Meer filed for Chapter 11 personal bankruptcy on September 30, 2008. In a separate adversarial complaint filed in the U.S. Bankruptcy Court for the District of Oregon, the Labor Department seeks to prevent Van der Meer from discharging any debt he owes to the 401(k) plan in his personal bankruptcy proceedings.

Parati Co. Inc. was a holding company for LDC Design Group of Oregon LLC, LDC Design Group of Washington PLLC, Parati California Inc., Meckel Engineering of Idaho, PLLC, and CTS Engineers of Washington PLLC. On April 19, 2007, Parati Co. Inc. took action to voluntarily liquidate itself.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to the pension, 401(k), health and other benefits of millions of American workers and their families. Employers and workers can reach the agency’s Seattle office at 206.553.4244 or toll-free at 866.444.3732 for help relating to private sector retirement and health plans.

Employers with similar problems who are not yet subjects of investigations by EBSA may be eligible to participate in the department’s Voluntary Fiduciary Correction Program. Participation in the program requires employers to correct any violations but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information, visit www.dol.gov/ebsa.

Secretary of Labor vs. Hans van der Meer
Civil Action Number 09-03061-tmb

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