Defunct Oklahoma business and owner sued by U.S. Department of Labor over misuse of 401(k) contributions and loan repayments

Tulsa, Oklahoma – The U.S. Department of Labor has sued defunct Aircraft Fueling Systems Inc. of Tulsa and its owner for improperly using for the benefit of the company employee contributions and loan repayments owed to the plan.

“The Labor Department will hold employers and their executives accountable when they misuse the hard-earned retirement assets of America’s workers and retirees,” said Roger Hilburn, director of the Dallas Regional Office of the department’s Employee Benefits Security Administration.

The lawsuit alleges that Joseph Wignarajah and the company violated the Employee Retirement Income Security Act by failing to forward employee contributions and loan repayments owed to the 401(k) plan during the period from July 2007 to August 2008. The suit also alleges that the defendants used the assets for their benefit and did not properly administer the plan.

As relief, the suit asks the court to require the defendants to restore all losses with interest and correct any transaction prohibited by ERISA. The department also seeks to require Wignarajah to continue to serve as the plan’s fiduciary for the purpose of winding down the affairs of the plan and to remove him after termination of the plan.

Aircraft Fueling Systems, which ceased operations on September 30, 2008, started as an engineering and design build company. It later branched into jet fuel storage and distribution primarily for airlines customers. As of December 31, 2008, the plan had 52 participants and $270,574.30 in assets, the latest data available.

Employers and workers can reach EBSA’s Dallas office at 972.850.4500 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.

Solis v. Wignarajah
Civil Action Number 4:10-cv-00220-GKF-TLW

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