|
 Printer Friendly Version
Release Date: August 24, 2007
Release Number: 07-1278-ATL (223)
Contact Name: Dan Fuqua/Michael Wald
Phone Number: 404.562.2078/404.562.2076
Atlanta – The U.S. Department of Labor has
obtained a default judgment in U.S. District Court for the Western
District of North Carolina requiring Federal Textile Engravers of
Charlotte, North Carolina, and its president and majority stockholder to
restore $13,150 to the company’s profit-sharing plan.
“The Labor Department will not hesitate to step in
to protect employees’ rights when it sees that companies are failing
in their fiduciary responsibilities,” said Howard Marsh, director of
the Atlanta Regional Office of the department’s Employee Benefits
Security Administration (EBSA).
The judgment resolved a lawsuit filed by the
department in 2006, alleging that the company diverted a portion of the
plan’s assets in violation of the Employee Retirement Income Security
Act (ERISA).
The court removed Federal Textile Engravers and Mario
Medina as fiduciaries of the plan and barred them from future service as
fiduciaries to any plan covered by ERISA. An independent fiduciary was
appointed to oversee the plan’s assets for its 14 participants.
Federal Textile Engravers is engaged in the business of textile
engraving and screen printing.
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.
Employers and workers can reach EBSA’s Atlanta
Regional Office at 404.302.3900 or toll-free at 1.866.444.EBSA (3272)
for help with problems relating to private sector retirement and health
plans.
Chao v. Federal Textile Engravers Inc.
Civil Action File Number 3:06-cv-00274-GCM
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.
|
