Labor department sues firm failing to contribute to its employees' retirement plans

[Omaha Steve]

http://www.bismarcktribune.com/articles/2008/11/27/news/local/170400.txt

Nov 27, 2008 - 04:06:19 CST
By BRIAN DUGGAN
Bismarck Tribune

A Bismarck wastewater treatment business has been sued by the U.S. Department of Labor for allegedly failing to contribute to its employees' retirement plans.

The labor department said Wednesday that an investigation into LAS International found that the company owes about $40,000 to its employees' 401(k) plans from 2004 and 2005. The lawsuit also alleges that CEO Neil Whittey and Syver Vinje used those funds to their benefit.

As of 2006, the company's 401(k) plan covered 32 people and had about $144,000 in assets, according to the labor department.

Vinje said he had not seen the lawsuit as of Wednesday afternoon and had no comment.

Whittey's phone number was disconnected Wednesday as was the phone number listed for LAS International.

The lawsuit is seeking court action to force LAS International to restore all losses and foregone earnings as well as requiring Whittey and Vinje to waive any rights to their 401(k) plan to offset any losses.

So far this year, the labor department investigated more than 1,200 similar cases that have yielded nearly $25 million in 401(k) contributions, according to the department.