US Labor Department sues Jendusa Engineering Associates of Hartland, Wis., to recover employee 401(k) contributions plus lost interest

MADISON, Wis. – The U.S. Department of Labor has sued Jendusa Engineering Associates Inc., an architectural company headquartered in Hartland, Wis., owner James Jendusa and fiduciary Carrie Jendusa to recover $10,441.53 in voluntary employee contributions and interest owed to the company's 401(k) plan. The case resulted from an investigation by the department's Employee Benefits Security Administration into alleged violations of the Employee Retirement Income Security Act.

The lawsuit, filed in the United States District Court for the Eastern District of Wisconsin located in Madison, alleges that the company and the Jendusas, who are both fiduciaries and trustees of the plan, failed to forward $10,441.53 in employee contributions to the plan from Feb. 15, 2008, to August 2008. They also allegedly failed to timely remit $53,116.04 in employee contributions from Jan. 1, 2008, through Feb. 15, 2008. The suit seeks a court order requiring restitution be made to the plan and barring the Jendusas from serving as fiduciaries to any ERISA-covered employee benefit plan in the future.

As of Dec. 31, 2007, the plan had 19 participants and $523,013 in assets.

"Failing to deposit employee voluntary contributions clearly violates the law, as well as the good faith and trust that employees rightfully expect from fiduciaries of benefit plans," said Steve Haugen, EBSA's regional director in Chicago, Ill. "The Labor Department will continue to help workers obtain their benefits when fiduciaries fail to properly administer all aspects of benefit plans."

This case is part of EBSA's national enforcement initiative to safeguard workers' contributions to 401(k) and health benefit plans. Employers and workers can reach EBSA's 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. Additional information can be found at www.dol.gov/ebsa.

Solis v. James Jendusa, Carrie Jendusa, Jendusa Engineering Associates Inc.
Civil Action Number: 11-cv-00438

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