Labor Dept. sues Maryland Sound & Image over 401(k) plan

http://www.bizjournals.com/baltimore/stories/2008/12/01/daily55.html

Thursday, December 4, 2008 - 1:50 PM EST

Baltimore Business Journal - by Rachel Sams Staff

The U.S. Department of Labor has sued Maryland Sound & Image, saying trustees of the company’s 401(k) profit-sharing plan did not properly submit employee contributions to the plan.

From 2003 to 2006, Baltimore-based Maryland Sound deducted employees’ 401(k) contributions from their paychecks, but did not pay all of the contributions into the plan, the federal lawsuit claims. Some employee contributions allegedly were submitted to the plan late and without interest.

The suit also names as defendants Walter Hill and Janet Sumner, who were trustees of the plan when the alleged violations occurred.

Audiovisual contractor Maryland Sound failed to keep the 401(k) plan’s assets separate from the assets of the company, the suit claims. Hill and Sumner “dealt with assets of the plan in their own interest or for their own account,” according to the suit. The suit stems from an investigation by the Washington office of DOL’s Employee Benefits Security Administration.

Hill said in an interview he owes Maryland Sound's 401(k) plan $20,000 and is working to reimburse the money. Those efforts have run into difficulties brought about by the recession and other factors, he said.

FULL story at link.