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Release Date: 10/22/2004
Release Number: 04-2113-ATL
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Atlanta, Georgia - The U.S. Department of Labor
sued Atlanta-based Clarion Resources Communication and its owner for
failure to remit or timely forward employee contributions to the company’s
profit sharing plan, resulting in $13,280.91 in losses to the plan. |
“The
law states that plan fiduciaries have a responsibility to manage the money
set aside in retirement plans for the benefit of employees and their
families,” said Howard Marsh, director of the department’s Atlanta
regional office of the Employee Benefits Security Administration (EBSA).
“Our legal action is designed to restore money to pay future benefits to
these plan participants.” |
The
lawsuit alleges that Clarion Resources Communications Resources and Henry
A. McLarty violated the Employee Retirement Income Security when they
failed to remit employee contributions to the plan at various times
between January 2000 and July 2001. In addition, they failed to segregate
plan assets from those of other funds, to ensure plan assets were received
by the plan and to obtain a fidelity bond as required by law. |
The
suit seeks to require that the company and McLarty restore all losses with
interest to the plan, return any illegal profits received by them and undo
transactions prohibited by law. The suit also asks the court to
permanently bar McLarty from service to any plan governed by ERISA and to
appoint an independent fiduciary to manage the plan, terminate it and
distribute the assets. |
Clarion
Resources, which served as the plan administrator, is in the business of
Telecommunications. The profit sharing plan covered 39 participants and
had assets of $45,665 as of December 31, 2000. |
The
case resulted from an investigation conducted by the EBSA’s Atlanta
regional office. In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers and
workers can contact the regional office at 202.452.2156 or EBSA’s toll
free number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector pension and health plans. |
(Chao
v. Clarion Resources Communications Corp.)
Civil Action No. 1:04-cv-02934RWS |
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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 202.693.7765 or TTY 202.693.7755. |
