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Release Date: September 7, 2006
Release Number: 06-1080-SAN (SF-118)
Contact Name: Roger Gayman
Phone Number: 415.975.4742
San Francisco, California - The U.S.
Department of Labor has sued John S. and Louise S. Villa, the owners of
Villa Automotive and Villa Service Center of San Luis Obispo,
California, for failing to forward employee contributions to the Villa
Automotive 401(k) employee pension benefit plan. The defendants are the
trustees of the 401(k) plan.
The suit, filed in U.S. District Court in Fresno,
seeks at least $66,800 in employee contributions, plus lost opportunity
income, for 51 current and former employees who are plan participants.
The defendants allegedly commingled the withheld amounts with the
companies’ general assets between June 2000 and March 2004.
The department’s suit seeks to permanently bar the
two defendants from serving as fiduciaries or service providers of
employee benefit plans covered by the Employee Retirement Income
Security Act. In addition, the lawsuit seeks the appointment of an
independent fiduciary to administer the plan, distribute its assets to
plan participants and beneficiaries, and oversee the plan’s
termination.
The companies provide auto body repair and towing
service at two locations in San Luis Obispo.
“The department is committed to protecting the
benefits of America’s workers and retirees,” said Billy Beaver,
regional director of the Labor Department’s Employee Benefits Security
Administration (EBSA) in Los Angeles, which investigated the case. “This
is money that was deducted from employees’ paychecks that belongs to
the workers. The department will not hesitate to seek recovery from
trustees and employers who misuse pension contributions.”
The suit resulted from an investigation conducted by
EBSA’s Los Angeles regional office. 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.
Employers and workers with questions or concerns
regarding their private-sector pension and health plans can contact the
EBSA regional office in Los Angeles at 626.229.1000 or EBSA’s toll
free number 1.866.444.EBSA (3272). Information is also available from
the agency’s Web site at www.dol.gov/ebsa.
(Chao v. San Geronimo Inc., Raphael Villa Vincencio
Inc., John S. Villa, Louise S. Villa, and Villa Automotive 401(k) Plan)
Civil Action No. CVCV06-5462AHM(PJx), United States District Court for
the Central District of California
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 202.693.7765 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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