U.S. Labor Department sues fiduciaries of McHenry, Illinois-based company to recover 401(k) profit sharing assets

McHenry, Illinois – The U.S. Department of Labor has sued the owner and profit sharing plan fiduciaries of the Forms Corporation of America 401(k) Profit Sharing Plan and Trust for allegedly failing to forward to the plan contributions withheld from employees’ pay, in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that from May 19, 2006, through July 21, 2006, Joseph A. Cesarz, president of Forms Corporation of America, its chief executive officer Doyle D. Hayt and plan trustee Julie M. Fayman withheld and failed to remit participant contributions to the plan. They also allegedly failed to terminate the plan in violation of ERISA. The department seeks a court order to recover all assets owed to the accounts of plan participants, remove the defendants as fiduciaries and appoint an independent fiduciary to distribute plan assets and terminate the plan.

“The department will act to help workers get their benefits when plan assets are either misused or the plans are abandoned,” said Steve Haugen, director of the Chicago Regional Office of the Labor Department’s Employee Benefits Security Administration (EBSA).

The suit, filed in federal district court in Chicago, resulted from an investigation conducted by EBSA’s Chicago office. Employers and workers can reach that 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 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.

Secretary of Labor v. Doyle Hayt
Civil Action Number: 09C 50056

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