U.S. Labor Department recovers funds for abandoned 401(k) plan of Lexington, Massachusetts employer

Boston – The U.S. Department of Labor has obtained a consent judgment and order recovering more than $25,000 owed to the Benes Communications Inc. 401(k) Profit Sharing Plan. The plan was sponsored by the now defunct Michael Benes Communications Inc. of Lexington, Massachusetts, and was controlled by Robert Feige, who was the president, treasurer, secretary, director and majority owner of Benes Communications.

In April 2008, the department sued Feige in the U.S. District Court for the District of Massachusetts alleging violations of the Employee Retirement Income Security Act (ERISA). The suit alleged that Feige, as trustee and fiduciary to the plan, failed to forward $25,284 in employee salary withholdings to the 401(k) plan between April 2004 and February 2005, and instead kept the money in corporate accounts. In addition, in June and July of 2005, he allegedly authorized and received his own distribution from the plan, and then took steps to terminate the 401(k) plan without ensuring that the missing employee contributions were forwarded to the plan. Feige subsequently abandoned all of his responsibilities with regard to the plan.

“Such actions of this defendant benefited the company at the expense of its employees, who were the participants in the 401(k) plan,” said Jean Ackerman, regional director of the department’s Employee Benefits Security Administration (EBSA) in Boston. “The law requires that plan funds be held in trust for participants and used only for the benefit of those participants and their beneficiaries.”

Under the consent judgment and order, Feige was ordered to pay restitution to the plan; to inform each plan participant of the details of the department’s lawsuit and the court order; to provide EBSA with proof of payment and a full accounting of the assets of the plan; to distribute the assets of the plan to eligible participants and to terminate the plan. In addition, Feige is permanently barred from acting as a fiduciary with respect to any ERISA-covered 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. Robert Feige
Civil Action Number: 08-CV-10556-RGS

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