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:1/17/2017)... ... January 17, 2017 , ... SensorInsight ®, ... Sigfox in the U.S.A. to offer Internet of Things (IoT) solutions based ... large-scale environmental sensor deployments such as monitoring solutions used to detect potentially hazardous ...
(Date:1/17/2017)... ... January 17, 2017 , ... SC&H Group, a leading ... a Principal in its IT Advisory Services practice . Rossi is the third ... market demand for strategic IT guidance grows, and the practice continues to expand.     , ...
(Date:1/17/2017)... ... 2017 , ... Physicians Education Review®, LCC (PER®) announces philanthropist, ... the 34th Annual Miami Breast Cancer Conference®, on March 9-12, 2017 at the ... said, “We are delighted to have Sandra Lee join us as our keynote ...
(Date:1/17/2017)... (PRWEB) , ... January 17, 2017 , ... Many people make New Year’s resolutions or ... Robert Mondavi is making it easier for people who want to kick off 2017 ... new and existing patients. , These special offers include: , , ...
(Date:1/16/2017)... ... January 17, 2017 , ... To ... internationally recognized leader in the fast-casual category, announces a hearty and wholesome Winter ... Egg Breakfast Sandwich, Turkey Mash-Up Sandwich, Cranberry Crunch & Honey Parfait, Slow Cooked ...
Breaking Medicine News(10 mins):
(Date:1/17/2017)... 17, 2017 Research and Markets has ... 2017 - 2024" report to their offering. ... This new report revisits the ... that was issued in May of 2015. Self-healing is an area ... previous analysis we projected a market potential of $2.7 billion ($US) ...
(Date:1/17/2017)... Management to Discuss Acquisition of ... KIT-302 Development On Track For An NDA ... Q1 2017   ... Holdings Ltd. (NASDAQ: KTOV ; TASE: KTOV), an innovative biopharmaceutical company, ... rd at 8:30am Eastern Time to discuss the recent acquisition of a ...
(Date:1/17/2017)... 17, 2017  Edwards Lifesciences Corporation (NYSE: ... structural heart disease and critical care monitoring, plans to ... 31, 2016 after the market closes on Wednesday, February ... 5:00 p.m. ET that day to discuss those results. ... (877) 407-8037 or (201) 689-8037.  For 72 hours following ...
Breaking Medicine Technology: