US Labor Department sues Miller Homes of Hudson LLC and former vice president to recover more than $21,000 in employee contributions

HUDSON, Wis. – The U.S. Department of Labor has sued Miller Homes of Hudson LLC and the company’s former vice president, Leo Draveling, seeking restitution of $21,716.10 in voluntary employee contributions plus loss interest to the company’s savings incentive match plan for employees individual retirement accounts. The case resulted from an investigation by the department into alleged violations of the Employee Retirement Income Security Act.

“It is an egregious violation of trust when employees’ voluntary salary contributions are not forwarded to their retirement plans,” said Steve Haugen, regional director of the department’s Employee Benefits Security Administration in Chicago, Ill. “The Labor Department will continue to help workers obtain their rightful benefits when fiduciaries fail in their responsibilities to properly administer employee benefit plans.”

The lawsuit, filed in U.S. district court in Madison, Wis., alleges that the Hudson-based company and Draveling violated ERISA by failing to forward $21,716.10 in employee contributions to the plan from Jan. 31, 2006, to Aug. 31, 2007. The suit also seeks unearned interest on $73,896.45 in late employee contributions made to the plan from Sept. 17, 2004, to Dec. 31, 2005. In addition, the suit asks the court to enjoin Draveling from serving as a fiduciary for any ERISA-covered employee benefit plan in the future.

The investigation was conducted by the EBSA’s Chicago Regional Office. Employers and workers can reach the Chicago office at 312-816-0503 or toll-free at 866-444-3272 for help with problems related 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. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. Draveling, Miller Homes of Hudson LLC
Civil Action Number: 10-CV-00604

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