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:3/24/2017)... ... 2017 , ... “The Communion of Saints: A Pastor’s Potpourri ... congregations across the United States. “The Communion of Saints” is the creation ... served congregations in seven states throughout his long career of devotion to the ...
(Date:3/23/2017)... Houston, Texas (PRWEB) , ... March 23, 2017 , ... ... their 3rd location in the greater Houston Area. The new location is located at ... St. Luke’s Hospital in Springwoods Village. This newest location will provide patients living in ...
(Date:3/23/2017)... ... 2017 , ... The IoT (Internet of Things) is revolutionizing the way the ... on businesses and individual consumers alike. Laboratories can maximize their profit margin by ... from $4 trillion to $11 trillion dollars by the year 2025. McKinsey expects the ...
(Date:3/23/2017)... (PRWEB) , ... March 23, 2017 , ... March is ... that pack a punch when it comes to maintaining good health. Every day, two ... minutes, your kidneys filter every drop of your blood, eliminating waste, regulating fluid levels ...
(Date:3/23/2017)... PA (PRWEB) , ... March 23, 2017 , ... ... comprehensive educational training program owned and organized by HMP Communications Holdings, LLC, today ... program for physicians within its nationwide network of wound centers interested in becoming ...
Breaking Medicine News(10 mins):
(Date:3/23/2017)... 23, 2017 Research and Markets has announced ... - Industry Forecast to 2025" report to their offering. ... The Global Cryostat ... over the next decade to reach approximately $3.5 billion by 2025. ... for all the given segments on global as well as regional ...
(Date:3/23/2017)... DUBLIN , Mar. 23, 2017 Research ... Valve Devices Market: Analysis By Procedure, Replacement Procedure By Technique, Repair ... their offering. ... Global Heart Valve Devices Market is forecasted to grow at a ... heart valve devices is driven by rising aging population, growth in ...
(Date:3/23/2017)... and INDIANAPOLIS , March ... LLY ) and the William Sansum Diabetes Center ... of Latino people affected by diabetes through enhanced research, ... of diabetes and cardiovascular disease bears a disproportionate weight ... ," said David Kerr , M.D., FRCPE, ...
Breaking Medicine Technology: