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Release Date: 10/22/2002
Release Number: 40
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Chicago, Illinois - The U.S. Department of Labor
obtained a consent order and judgment on September 10, ordering Barry
Duane Bielema, the former owner of Snyder’s Bulk Plant Service, Inc. of
Amboy, Illinois, and trustee of the company’s 401(k) plan, to restore
$5,693 to the plan and permanently barring him from serving any employee
benefit plan covered by federal pension law. |
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The judgment, which was entered in the federal district
court in Rockford, Illinois, also ordered Bielema to terminate the plan,
distribute its assets, and forfeit his rights to his plan account to
satisfy the liability. |
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“This action demonstrates the department’s
commitment to protecting the benefits of America’s workers,” said
Kenneth Bazar, director of the Chicago regional office of the department’s
Pension and Welfare Benefits Administration, which investigated the case. |
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The court action resolves a lawsuit brought by the
department in April 2002 against Bielema and his now defunct company. He
allegedly withheld approximately $5,000 from employees’ salaries but
failed to forward the money and lost opportunity costs to the company’s
401(k) plan between February and June 2001, in violation of the Employee
Retirement Income Security Act (ERISA). The 401(k) plan was established
May 1, 1986, and covered six participants with $279,165 in assets as of
April 30, 2000. |
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Kenneth Bazar noted that employers with similar
problems, who are not yet the subject of an investigation by EBSA, may be
eligible to participate in the Department’s Voluntary Fiduciary
Correction Program (VFCP). Participation in the VFCP 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 about the VFCP see www.dol.gov/ebsa. |
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Employers and workers can contact the regional office
at 312.353.0900 or EBSA’s Toll-Free Employee & Employer Hotline
number, 1.866.275.7922, for help with problems relating to private-sector
pension and health plans. |
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(Chao v. Bielema
Civil Action No. 02 C 50119) |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
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