Labor Department recovers 401(k) contributions for former Los Gatos company employees

[Omaha Steve]

http://www.bizjournals.com/sanjose/stories/2008/03/17/daily15.html

The U.S. Department of Labor said late Monday it reached an agreement with the president of UltraCard Inc., a revoked Nevada corporation operating out of Los Gatos, to restore employee contributions and lost interest to the company-sponsored 401(k) plan.

The agreement, entered in federal district court in San Jose, calls for Daniel Kehoe to restore $33,829 in employee contributions and losses, and to distribute these funds to the plan's participants.

The agreement resolves a Labor Department lawsuit filed in December 2006 against Kehoe and UltraCard for failing to remit employee contributions to the plan in violation of the Employee Retirement Income Security Act.

Kehoe, who now resides in Bend, Ore., also agreed to pay a $6,658 penalty. He is barred from future service as a fiduciary or service provider to an ERISA-covered employee benefit plan.

The Department of Labor suit alleged that the company deducted amounts from employee paychecks between April 15 and July 15, 2002, but never forwarded the workers' contributions to the plan. The defendants allegedly also failed to terminate the plan and distribute its assets to eligible participants. The funds ranged from $1,100 to $4,350.

[TransitJohn]

1. One for the people.

Thanks Steve.