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Release Date: June 5, 2006
Release Number: 06-959-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
St. Joseph, Michigan - The Labor Department
has sued Edward L. Krieger, president of the now defunct National Sales
Inc., St. Joseph, Michigan, for using a portion of the company’s
401(k) plan assets for purposes other than to pay plan expenses. In a
separate complaint, the department sued Krieger in bankruptcy court to
ensure that any debts owed to the plan are not discharged.
The department’s civil lawsuit, filed in U.S.
District Court for the Western District of Michigan, alleges that
Krieger violated the Employee Retirement Income Security Act (ERISA) by
requesting funds from the company’s 401(k) plan and using some of the
money for non-plan expenses. At the time of the violations, which
allegedly occurred during 2001 through 2004, Krieger was the trustee of
the 401(k) plan.
The suit seeks to require that Krieger repay any
losses with interest owed to the plan and to undo any transactions
prohibited by law. The suit also asks the court to appoint an
independent fiduciary to collect, terminate and distribute any remaining
plan assets to the plan participants, and to bar Krieger from serving as
a fiduciary or service provider to any ERISA-covered employee benefit
plan in the future.
“The department will aggressively enforce the law
to protect the retirement funds of the hardworking men and women of this
company,” said Joseph Menez, director of Employee Benefits Security
Administration’s Cincinnati regional office. “Our legal actions are
designed to restore money owed to the plan to pay future benefits to
these workers.”
Employers and workers can reach EBSA’s Cincinnati
regional office at 859.578.4680 or through EBSA’s toll-free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans. In fiscal year 2005, EBSA achieved record
monetary results of $1.7 billion related to pension, 401(k), health and
other benefits for millions of American workers and their families.
(Chao v.Krieger) Civil Action No. #06-00365-GJQ
In Re: Edward Loren Krieger Bankruptcy Case No. 05-18436-JRH
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