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Release Date: August 21, 2007
Release Number: 07-1238-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
Mequon, Wisconsin – The U.S. Department of
Labor has sued David Belfus, who operated as Your World Travel Services
in Mequon, for failing to remit employee contributions to the
company-sponsored 401(k) plan and co-mingling those funds with assets of
the company.
“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Steven Haugen, director of the
department’s Employee Benefits Security Administration (EBSA) Chicago
Regional Office.
The lawsuit alleges that Belfus, as the plan
fiduciary and sole owner of the travel service, violated the Employee
Retirement Income Security Act by failing to remit and segregate
employee contributions deducted from workers’ paychecks that were owed
to the plan. Violations are alleged to have occurred from January
through March 2005. The suit seeks to require that all contributions
plus interest be restored to the 401(k) accounts.
Employers with similar problems who are not yet the
subjects of EBSA investigations may be eligible to participate in the
department’s Voluntary Fiduciary Correction Program (VFCP).
Participation requires employers to make workers whole but allows them
to avoid EBSA enforcement actions and civil penalties as well as any
applicable excise taxes. For more information, see www.dol.gov/ebsa.
Employers and workers can reach EBSA’s Chicago
Regional Office at 312.353.0900 or toll-free at 1.866.444.EBSA (3272)
for help with problems relating to private sector retirement and health
plans. In fiscal year 2006, EBSA achieved monetary results of $1.4
billion related to pension, 401(k), health and other benefits for
millions of American workers and their families.
Chao v. Belfus
Civil Action Number 07-C-0737.
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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