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Release Date: August 27, 2007
Release Number: 07-1277-ATL
Contact Name: Gloria Della/Richard Manning
Phone Number: 202.693.8664/202.693.4676
Orlando, Florida — The U.S. Department of
Labor has obtained a judgment and order requiring Traylor Chemical &
Supply Co., Orlando, Florida, to restore $612,658 plus interest to the
company’s profit-sharing plan. The department also may assess a civil
monetary penalty for violation of the Employee Retirement Income
Security Act (ERISA).
“Those entrusted with retirement plan assets cannot
use those funds to benefit themselves,” said Bradford P. Campbell,
assistant secretary for the Labor Department’s Employee Benefits
Security Administration (EBSA). “Last year, the department recovered
$1.4 billion in retirement, 401(k), health and other benefits for
workers and their families.”
Under the judgment, money restored to the plan will
be allocated to the accounts of all plan participants except the
defendant trustees.
The department’s lawsuit, filed simultaneously with
the judgment in federal district court in Orlando, alleged that the
company, William Traylor Jr., William E. Comer and Frances Hale violated
ERISA when they executed 32 prohibited loans between the plan and
Traylor Chemical. At the time of the improper loans, the defendants
served as trustees of the plan as well as officers of the company.
The suit also alleges that the defendants failed to
take action to restore the full amount of outstanding loans owed to the
plan, and each defendant failed to monitor and correct the improper
actions of the other plan trustees.
Traylor Chemical manufactures and distributes
products related to the fertilizer industry. The plan had 33
participants according to the latest available data.
The Atlanta Regional Office of EBSA investigated the
case. Employers and workers can reach the Atlanta 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. Traylor Chemical & Supply Co.
Civil Action Number 6:07-cv-1258-orl-22UAM
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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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