U.S. Labor Department sues Tampa Bay, Florida, construction contractor to recover 401(k) savings plan losses

Tampa, Florida – The U.S. Department of Labor is suing Angell Contracting and Construction Inc., Creative Carpentry Inc., Angell Restoration Services and the owner of the three companies, Chad Angell, to require the defendants to restore losses to the companies’ 401(k) savings plan.

The department’s lawsuit alleges that between January and September of 2007 the companies failed to timely forward $25,752.04 to the savings plan in accordance with the Employee Retirement Income Security Act and the governing plan documents.

The 401(k) plan allowed employees to contribute up to 4 percent of their compensation, which was required to be matched 100 percent by the company. The missing deposits included $13,027.21 in employee contributions, $2,986.53 in participant loan repayments and $9,738.30 in matching company contributions.

“Workers are counting on these funds for their retirement, and it is unconscionable that an employer would take these funds for his own benefit,” said R.C. Marshall, director of the Atlanta Regional Office of the Employee Benefits Security Administration in Georgia.

A suit filed in the U.S. District Court for the Middle District of Florida asks the court to order the defendants to restore all losses, including interest and lost opportunity costs, offset the individual plan accounts of any defendant against the losses owed to the plan, and permanently bar them from serving as fiduciaries of any plan subject to ERISA. The suit also seeks the appointment of an independent fiduciary to administer the plan.

Angell Contracting and Construction and its related companies specialized in commercial and residential real estate construction in the Tampa Bay area.

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, visit www.dol.gov/ebsa.

Solis v. Angell Contracting and Construction Inc.
Civil Action File Number 8:10-cv-01858-JSM-AEP

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