U.S. Labor Department recovers almost $32,000 for company 401(k) plan from Shelton, Connecticut, employer

New Haven, Connecticut – The U.S. Department of Labor has recovered nearly $32,000 owed to the Image Graphics Inc. Employee 401(k) Profit Sharing Plan. The plan is sponsored and administered by Image Graphics Inc. of Shelton, Connecticut, which was sued by the department for alleged violations of the Employee Retirement Income Security Act (ERISA).

The Labor Department filed the lawsuit in the U.S. District Court for the District of Connecticut alleging that Image Graphics Inc. failed to discharge its fiduciary duties with respect to the plan between June 15, 2003, and April 30, 2008, by repeatedly failing to forward to the plan funds withheld from employee salaries for deposit to their 401(k) accounts.

“Such delays benefited the company at the expense of its employees,” said Jean Ackerman, regional director of the Labor Department’s Employee Benefits Security Administration (EBSA) in Boston. “The law requires that plan funds be held in trust for the participants and used only for the benefit of those participants and their beneficiaries.”

The consent judgment entered by the court confirms that the company has restored to the plan $26,736.33 representing the outstanding employee salary deferral amounts that should have been deposited earlier into the company 401(k) plan. In addition, the company has paid into the plan $5,041.87 representing lost earnings on the previously undeposited funds. The judgment orders the company to comply in the future with all provisions of ERISA, especially those pertaining to the timely deposit of employee contributions to the plan.

This case was investigated by EBSA’s Boston Regional Office. Employers and workers seeking help with problems relating to private sector pension and health plans may reach the Boston office at 617.565.9600 or the agency toll-free at 866.444.3272. 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. Additional information can be found at www.dol.gov/ebsa.

Solis v. Image Graphics Inc.
Civil Action Number: 3:09-CV-00663-VLB

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.