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Release Date: 10/27/2004
Release Number: 04-142
Contact Name: Michael Shimizu
Phone Number: 206.553.7620
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Portland, Oregon - The U.S. Department of Labor
has filed an adversary complaint in federal bankruptcy court in Portland,
to protect $45,000 owed to the 401(k) profit sharing plan of defunct Moore
Communications, Inc. of Beaverton. |
The
complaint seeks to prevent Sidney and Jeanette Moore, the founders and
former owners of the company, from discharging debts owed to the plan in
bankruptcy proceedings. The department alleges that the Moores, who also
were fiduciaries of the company’s 401(k) plan, violated the Employee
Retirement Income Security Act by failing to forward contributions and
interest to the plan over a period of months before the company was sold.
The Moores also commingled the funds with the company’s general assets
and used the money to satisfy general corporate obligations. |
“This
case sends a strong message to those responsible for employee benefit
plans that they cannot misuse their employees’ funds or have their
personal debts forgiven at the expense of the employees,” said Paul
Baumann, acting regional director of the Labor Department’s Employee
Benefits Security Administration (EBSA) in San Francisco. |
Baumann
said the plan has not yet been terminated. While the company deposited
some funds into the plan, a substantial amount of money was never
deposited into plan accounts. Moore Communications, which closed its doors
on June 1, 2003 after being sold to Accolade Technologies, Inc.,
specialized in sales, service and repairs of telecommunications products.
There were approximately 12 employees participating in the plan when the
company was sold. |
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The case was investigated by EBSA’s Seattle district
office. 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 worker and their families. Employers and workers with
questions or concerns regarding their private-sector pension and health
plans can contact the EBSA District Office in Seattle at 206.553.4244 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. Moore)
Adversary No. 04-03402
(Bankruptcy Court) |
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. |
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