U.S. Labor Department sues Turlock, Calif.-based D.L. Silva Inc. to recover workers' health and pension benefits contributions

Turlock, California – The U.S. Department of Labor has sued D. L. Silva Inc., Daniel Silva, Dennette Dores and the estate of Dennis Silva for allegedly failing to remit or collect $104,513 in employee and employer contributions owed to the company's plan in violation of the Employee Retirement Income Security Act. The plan provides health and pension benefits to as many as 19 company employees.

The company, which also operated as Custom Air, was in the business of performing heating, ventilation and air conditioning services for residential, commercial and tract housing.

The lawsuit, filed in the U.S. District Court for the Eastern District of California, alleges that the company, Daniel Silva, Dennette Dores and the late Dennis Silva failed to timely segregate and remit to the plan $22,559 in employee contributions from January 2006 through March 2007, and failed to collect and remit $81,954 in Davis-Bacon prevailing wage fringe benefit contributions owed to the plan from February 2005 through March 2007.

The suit seeks a court order to require that the defendants restore to the plan all losses with interest and to permanently bar Daniel Silva and Dennette Dores from serving as fiduciaries or service providers to any plan governed by ERISA. The suit also seeks to appoint an independent fiduciary to administer and terminate the plan, if appropriate.

"Plan officials have a duty to manage and protect employees' benefit plans and their assets," said Jean Ackerman, regional director of the department's Employee Benefit Security Administration San Francisco Regional Office, which investigated this case. "Our action today is designed to restore the plan assets that were not properly preserved for the company's workers."

Employers and workers can reach EBSA's San Francisco 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 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. D. L. Silva Inc.
Civil Action Number: 2:10-at-01280

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