U.S. Department of Labor sues administrators of Elk Grove, Illinois, company to recover former employees’ health care contributions

Elk Grove, Illinois – The U.S. Department of Labor has sued the former owners of Jet Fastener Corp. in Geneva and fiduciaries of the company’s health plan to recover employee health benefit contributions used to pay the company’s operating expenses.

The lawsuit, based on an investigation conducted by the department’s Employee Benefits Security Administration (EBSA), alleges that Raullo Eanes and Gina Eanes violated the Employee Retirement Income Security Act (ERISA) during the period from April 1 to December 3, 2008. The defendants allegedly allowed $10,449 in health premium contributions to be deducted from employees’ pay even though the insurance provider had canceled its coverage.

Raullo and Gina Eanes also allegedly co-mingled those funds with Jet Fastener’s general assets and used the money to pay the company’s general operating expenses.

“The Labor Department will continue to help workers obtain their benefits when plan assets are misused,” said Steve Haugen, director of EBSA’s Chicago Regional Office.

The suit, filed in federal district court in Chicago, seeks a court order to require that the defendants return the contributions with interest to the health plan participants and to bar them from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan.

Employers and workers can reach EBSA’s Chicago Regional 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 2009, EBSA achieved monetary results of $1.3 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Additional information can be found at http://www.dol.gov/ebsa.

Solis V. Eanes
Civil Action Number: 10 cv 0090

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