U.S. Labor Department sues to protect Utah retirement assets in bankruptcy proceeding

U.S. Labor Department sues to protect Utah retirement assets in bankruptcy proceeding

Salt Lake City – The U.S. Department of Labor has filed an adversary complaint in federal bankruptcy court in Utah to prevent Victor Jay Miller from discharging $26,964.51 in employee contributions owed to the Allwest Sales & Service Salary Reduction Simplified Employee Pension Plan.

The complaint seeks a court order to establish that these unremitted employee contributions owed to the Simplified Employee Pension Plan cannot be discharged in Miller’s pending bankruptcy. The complaint also alleges that Miller violated his fiduciary duties under the Employee Retirement Income Security Act (ERISA) by failing to take any action to remit participant contributions to the plan. As of December 9, 2009, the plan had 26 participants.

“The Labor Department is committed to protecting the benefits of America’s workers and retirees,” said Billy Beaver, regional director of the department’s Employee Benefits Security Administration (EBSA) in San Francisco, Calif. “We will not hesitate to act to hold accountable those who misuse workers’ retirement assets.”

Miller was president of Allwest Sales & Service Inc., the Utah-based plan sponsor. Before ceasing operations July 1, 2009, the company was in the business of servicing and distributing hydraulic-industrial hose and coupling products. Miller filed for Chapter 7 bankruptcy November 4, 2009.

Employers and workers can reach EBSA’s San Francisco Regional Office at 415.625.2481 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 the pension, 401(k), health and other benefits for millions of American workers and their families.

Employers with similar problems who are not yet the subjects of investigations by EBSA may be eligible to participate in the department’s Voluntary Fiduciary Correction Program. Participation requires employers to correct any violations but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. Miller
Case No. BK 09-32291
Bankr. D. Utah

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.