Federal court grants U.S. Labor Department default judgment requiring Atlanta company and president to repay nearly $100,000 to 401(k) plan

Atlanta – A federal district court in Atlanta has ordered Insight Research and its president, Allen McMillon, to repay to the company's 401(k) plan $99,784.42 plus additional lost earnings accrued between Sept. 22, 2009, and the date of the judgment.

The order, entered in the U.S. District Court for the Northern District of Georgia, resulted from a lawsuit by the U.S. Department of Labor that alleged the defendants violated the Employee Retirement Income Security Act (ERISA). The defendants failed to respond to the department's complaint and failed to plead or otherwise defend their actions in court.

"The Labor Department is committed to protecting the interests of pension plan participants, and we are pleased that the court has agreed with us that the funds diverted from these plan participants must be restored," said R.C. Marshall, regional administrator for the department's Employee Benefits Security Administration (EBSA) in Atlanta.

EBSA originally alleged that 401(k) employee contributions between August 2001 and May 2003 were diverted to the general operating assets of the company. After the department filed its suit in 2005, McMillon allegedly instructed the plan's custodian to liquidate the remaining plan assets and deposit them into a corporate account.

In July 2006, the department won a judgment against the defendants requiring them to restore funds, prohibiting them from future violations of ERISA and requiring the appointment of an independent fiduciary.

This default judgment requires the defendants to make full restitution to the company's 401(k) plan and appoints an independent fiduciary at the defendants' expense to distribute the plan assets to participants and terminate the plan.

Insight Research is a technology systems integrator and consulting company headquartered in Atlanta.

In fiscal year 2009, the Labor Department achieved monetary results of $1.3 billion in 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. For more information, see www.dol.gov/ebsa.

Solis v. Insight Research Inc.
Civil Action File Number 1:08-CV-2540-TWT

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