U.S. Department of Labor sues Atlanta engineering company to bar owners from serving as employee benefit plan fiduciaries

Atlanta – The U.S. Department of Labor has sued Atlanta engineering company Williams-Russell & Johnson and two of its owners, Pelham C. Williams and Charles E. Johnson Sr., for failure to forward employee contributions and loan repayments in a timely manner to the company's 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA).

While the contributions and loan repayments have been restored to the plan, the complaint was filed to restore lost earnings on the funds. In addition, the department's Employee Benefits Security Administration (EBSA) is seeking to bar the defendants from acting as fiduciaries of any plan subject to ERISA.

The lawsuit, filed in the U.S. District Court for the Northern District of Georgia in Atlanta, alleges that the defendants violated ERISA and deprived employees of their retirement assets. The transactions allegedly occurred between January 2006 and November 2009, when employee assets were co-mingled with the general assets of the company. The defendants allegedly also failed to obtain an adequate fidelity bond. The suit asks the court to appoint an independent fiduciary at the defendants' expense to oversee the company's plan and require the defendants to restore lost earnings to the plan.

"Employees of this company are counting on their 401(k) assets being there when they retire, and the Labor Department will not allow plan fiduciaries to misuse those funds for other purposes," said R.C. Marshall, regional administrator of EBSA in Atlanta.

Williams-Russell & Johnson is an engineering, architectural and construction management company headquartered in midtown Atlanta and lists its 401(k) plan as part of a comprehensive benefit package available to its employees.

Employers who are not yet subjects of EBSA investigations may be eligible to participate in the Labor Department's Voluntary Fiduciary Correction Program. Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes.

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. 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 http://www.dol.gov/ebsa.

Solis v. Pelham C. Williams
Civil Action File Number 1:09-cv-3674-RWS

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