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Release Date: 08/24/2004
Release Number: 04-1610-KAN
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Topeka, Kansas - The U.S. Department of Labor
has filed an adversary complaint to require the owner of the now- defunct
Standard Hart Printing Inc. of Topeka, Kansas, to pay $14,794 owed to the
company’s SIMPLE IRA and health plans as restitution for employee
contributions that weren’t forwarded to the plans. |
“The
Labor Department acted so that the plan participants will receive the
money still owed to them,” said Steven R. Eischen, director of the
Kansas City regional office of the department’s Employee Benefits
Security Administration (EBSA), which investigated the case. “Even when
a plan fiduciary declares personal bankruptcy, we act to recoup as much
money as possible for its plan participants.” |
The
complaint, filed in the federal district court in Topeka, alleges that
Richard Ashcraft violated his fiduciary duties under the Employee
Retirement Income Security Act (ERISA) by allowing employee contributions
owed to the retirement and health plans to be used for the benefit of
Standard Hart Printing. From September 28, 2001 to the present, Ashcraft
allegedly failed to forward $14,794 in voluntary employee contributions to
the plans. The suit also alleges that the defendant failed to segregate
the employees’ contributions from the company’s general assets. |
The
department’s adversary complaint seeks a determination from the court
that the debt created by Ashcraft’s failure to forward to the plan –
the employee contributions plus lost earnings on those contributions –
are non-dischargeable in the bankruptcy action. |
Ashcraft became the sole owner of Standard Hart
Printing in 1991 when he purchased the company. As of December 2002, the
SIMPLE IRA plan held $13,313 and had 20 participants. The health plan was
fully insured with Blue Cross/Blue Shield and had seven participants. |
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 applicable excise taxes. For more
information about the VFCP see www.dol.gov/ebsa. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach EBSA’s
Kansas City regional office at 816.426.5131 or through EBSA’s toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao v. Richard Ashcraft)
Civil Action No. 04-07086 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. 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
www.dol.gov/compliance. |