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Release Date: July 28, 2006
Release Number: 06-1291-ATL (154)
Contact Name: Dan Fuqua
Phone Number: 404.562.2078
Atlanta, Georgia - The U.S. Department of
Labor has obtained a consent judgment ordering Commetrex Corp., Roswell,
Georgia, and CEO Michael Coffee to restore $27,452 to the company’s
401(k) plan.
“Those entrusted to manage employee benefit plans
are required to do so in a careful manner and solely for the benefit of
participants,” said Howard Marsh, director of the Atlanta regional
office of the department’s Employee Benefits Security Administration (EBSA).
In its lawsuit, the department alleged that Commetrex
and Coffee, the 401(k) plan fiduciary, violated the Employee Retirement
Income Security Act (ERISA) between January 2000 and March 2006. The
defendants allegedly failed to segregate employee plan contributions
from company assets and to forward those contributions to the plan in a
timely manner.
Entered in U.S. District Court in Atlanta, the
judgment requires the defendants to restore the contributions to the
plan. The money is to be allocated to the accounts of plan participants
and beneficiaries.
Commetrex develops telecommunications software and
provides engineering and consultation services. The company-sponsored
401(k) plan had 14 participants and assets totaling $140,516 as of
December 2003.
Employers with similar problems who are not yet the
subject of an investigation by EBSA may be eligible to participate in
the department’s Voluntary Fiduciary Correction Program (VFCP).
Participation in the program requires employers to correct all
violations but allows them to avoid EBSA enforcement actions and civil
penalties as well as any applicable excise taxes. For more information
about the VFCP, see www.dol.gov/ebsa.
The suit resulted from an investigation by EBSA’s
Atlanta regional office. Employers and workers can contact the regional
office at 404.562.2156 or EBSA’s toll-free number 1.866.444.EBSA
(3272) for help with problems relating to private-sector pension and
health plans. In fiscal year 2005, EBSA achieved monetary results of
$1.7 billion related to pension, 401(k), health and other benefits for
millions of American workers and their families.
(Chao v. Commetrex Corp.)
Civil Action No. 1:06-CV-01548-BBM
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placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
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with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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