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Release Date: September 12, 2006
Release Number: 06-1577-PHI (EBSA 138)
Contact Name: Kate Dugan
Phone Number: 215.861.5101
Philadelphia, Pennsylvania - The U.S.
Department of Labor sued Javis Automation & Engineering, Inc.,
Dumfries, Virginia, and its president, John W. Long, Sr., for failure to
remit contributions deducted from employees’ paychecks to the
company’s 401(k) profit sharing plan.
The lawsuit alleges that the company, Long Sr., John
W. Long, Jr. and Erick McKinley violated the Employee Retirement Income
Security Act (ERISA) when they failed to forward or timely remit plan
contributions deducted from employees’ paychecks from January 2001
through June 2004.
“This legal action should put employers and plan
sponsors on notice that we will not hesitate to enforce the law to
ensure that workers receive the benefits to which they are entitled,”
said Mabel Capolongo, regional director of the department’s
Philadelphia office of the Employee Benefits Security Administration (EBSA).
Filed in U.S. District Court for the Eastern District
of Virginia in Alexandria, the suit seeks a court order to remove the
company and the individual defendants as plan fiduciaries; to require
them to restore any losses to the plan plus lost opportunity costs; and
to appoint an independent fiduciary to terminate the plan. The
department’s suit also asks that the defendants be permanently barred
from serving as fiduciaries to any plan in the future.
The suit resulted from an investigation conducted by
EBSA’s Washington district office. Employers and workers needing help
with problems related to private-sector retirement and health plans can
reach the Washington district Office at 301.713.2000 or call EBSA’s
toll-free number, 1.866.444.EBSA (3272).
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. Information on EBSA
is available from the agency’s website www.dol.gov/ebsa.
(Chao v. Long)
Civil Action No. 1:06 cv 1029
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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 202.693.7765 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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