Navigation Links
U.S. Labor Department sues owners of bankrupt Aurora, Ill., trucking company to recover $3 million in unpaid employee medical claims
Date:1/12/2010

CHICAGO, Jan. 12 /PRNewswire-USNewswire/ -- The U.S. Department of Labor has sued the owners of bankrupt Mid-States Express Inc. of Aurora, Ill., for allegedly failing to protect the interests of the participants and beneficiaries in the company's 401(k) and health plans.  The department's lawsuit alleges that Bruce Hartmann failed to disclose to employees that their medical bills were not likely to be paid, even as the company continued to take deductions from their paychecks for medical coverage.  

As a result, despite the fact that $1.26 million in employee health plan contributions were withheld, $3 million in employee medical claims were not paid, in violation of the Employee Retirement Income Security Act (ERISA). Hartmann was an officer and owner of the company.

The suit also alleges that Bruce Hartmann and Terry Hartmann violated their fiduciary duties when they failed to remit $65,000 in contributions and loan re-payments, and to timely remit more than $1.5 million in 401(k) plan participant contributions and loan re-payments. The company was allowed to retain these contributions and loan repayments for its own benefit at the expense of participants and beneficiaries.

"These defendants blatantly misused their employees' retirement and health benefit contributions for personal gain," said Phyllis C. Borzi, assistant secretary of the Labor Department's Employee Benefits Security Administration (EBSA).  "Despite financial hardships, employers and plan officials are obligated to forward those employee contributions to the plans."

Mid-States Express provided transportation delivery services until it ceased operation on March 27, 2009.  The company is currently in Chapter 7 bankruptcy. The company 401(k) plan covered 656 participants and had $3,073,342 in assets as of Dec. 31, 2007. The company health plan covered 378 active participants as of Dec. 31, 2007. These are the latest data available.

The suit seeks a court order to require that the defendants restore any losses, with interest, suffered by the plans or their participants and beneficiaries and to undo any prohibited transactions involving the plans. The suit also asks the court to remove the Hartmanns from their fiduciary positions to the plans and to permanently bar each of them from serving in a fiduciary capacity, or service provider, to any plan governed by ERISA.

This case was investigated by EBSA's Chicago Regional Office, which is available at 312-353-0900 or toll-free at 866-444-3272 to provide help with problems relating to private sector retirement and health plans. In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Solis v. Hartmann    

Civil Action Number 10-cv-00123

U.S. Department of Labor releases are accessible on the Internet at http://www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audiotape or disc) from the COAST office upon request.  Please specify which news release when placing your request at 202-693-7828 or TTY 202-693-7755.  The Labor Department 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 http://www.dol.gov/compliance.

SOURCE U.S. Department of Labor

RELATED LINKS
http://www.dol.gov

'/>"/>

SOURCE U.S. Department of Labor
Copyright©2010 PR Newswire.
All rights reserved

Related medicine news :

1. Quality Transformation Collaborative Effort by Hospitals Saves Children's Lives by Eradicating Bloodstream Infections
2. The Institut Curie and Ipsogen Sign a Scientific Collaboration Agreement Relating to the Genomic Grade, a Molecular Diagnostic Tool for Breast Cancer
3. Statement of US Secretary of Labor Hilda L. Solis on December 2009 employment numbers
4. Underwriters Laboratories Announces Alternative Certification Program for Lead Free Verification of Cooking and Plumbing Products
5. Seattle-based PhenoPath Laboratories Retests Nearly 3,000 Breast Cancer Specimens from Quebec Breast Cancer Inquiry
6. New Learning Collaborative to Prepare Clinicians for Better Chronic Care
7. Abbott to Acquire STARLIMS Technologies Ltd., a Leader in Laboratory Information Management Systems
8. LABORIE Announces Its Urodynamic Systems Integration with meridianEMR
9. Prize4Life and the Jackson Laboratory team up to fight ALS
10. Labor Board OKs 2,300 Kaiser Professionals to Quit SEIU and Join National Union of Healthcare Workers
11. Labor Board Decision Puts Kaiser Workers Pay, Healthcare, Pensions in Jeopardy
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/27/2016)... , ... May 27, 2016 , ... More than a ... it is not surprising that bariatric surgery has received increased attention in recent years, ... Of course, when it comes to weight loss, most people are familiar with the ...
(Date:5/27/2016)... ... 27, 2016 , ... With over 60 percent of acute stroke survivors being ... product to aid in the rehabilitation process has steadily increased. Ekso Bionics had been ... hemiplegia due to stroke. , Ekso Bionics has now received clearance from the U.S. ...
(Date:5/27/2016)... ... May 27, 2016 , ... Aimed ... by inspiring human interest stories, courtesy of leaders in the nursing and health ... the industry, from leading advocates and associations—namely Jones & Bartlett Learning. , Jones ...
(Date:5/26/2016)... ... May 26, 2016 , ... There are many ways to cook a ... (NHDSC) suggests that Americans prefer their dogs straight off the grill. Of the 90 ... their favorite way to cook a hot dog, far outpacing other cooking methods such ...
(Date:5/26/2016)... ... 26, 2016 , ... Connor Sports, through its Connor Cares initiative, ... Tamika Catchings Legacy Tour that will commemorate the Indiana Fever legend’s hall-of-fame ... in all forms and levels of the game, Connor Sports has committed to a ...
Breaking Medicine News(10 mins):
(Date:5/27/2016)... May 27, 2016 According to ... hypertension is driving ambulatory blood pressure monitoring system market ... and their ability to respond to different pressure rates, ... can lead to various cardiovascular disorders such as heart ... These diseases are growing in prevalence each year. WHO ...
(Date:5/27/2016)... SAN FRANCISCO , May 27, 2016 ... biotechnology company focused on developing products for Regenerative Medicine, Neurology and ... Commissiong will be presenting at two upcoming investor conferences: ... Conference Center, 730 Third Avenue, New York City ... at 3:00pm Marcum MicroCap Conference   ...
(Date:5/26/2016)... May 26, 2016 A key ... is the emergence of new treatments. Cardax, a development ... osteoarthritis treatment. The therapy is expected to fulfil large ... UK is conducting studies to develop new treatments for ... the genes involved in osteoarthritis are being investigated, and ...
Breaking Medicine Technology: