U.S. Department of Labor Obtains Order Requiring Seneca, S.C., Company to Restore More Than $1.5 Million to 401(k) Profit-Sharing Plan

Source: U.S. Department of Labor (DOL)

ATLANTA — The U.S. Department of Labor has obtained a consent judgment in the U.S. District Court for South Carolina ordering a leading training services company and plan fiduciaries to restore $1,523,227 to the company's 401(k) profit-sharing plan.

"This legal action protects the workers and their families who have been counting on this 401(k) for their retirement," said U.S. Secretary of Labor Elaine L. Chao.

Under the judgment, the defendants have agreed to restore $1,269,881 in losses plus $253,346 in lost earnings. The judgment also bars the company and plan trustee from future service as fiduciaries to any plan covered by the Employee Retirement Income Security Act (ERISA).

The Labor Department alleged that the plan's fiduciaries caused losses through mismanagement and acts prohibited under ERISA by making imprudent investments and improper loans.

In addition to the restitution, the plan trustee and estate already have incurred costs associated with the appointment of an independent fiduciary to oversee plan assets on behalf of 24 participants.

Employers and workers can reach the Employee Benefits Security Administration's (EBSA) Atlanta Regional Office at 404-302-3900 or toll-free at 866-444-3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.