US Department of Labor files suit to recover unpaid contributions to 401(k) plan of West Haven, Conn., contractor

Office of Public Affairs Boston MA For Immediate Release:January 8, 2014 Contact:Ted Fitzgerald or Andre J. Bowser Phone:(617) 565-2075 or (617) 565-2074 E-mail:fitzgerald.edmund@dol.gov or bowser.andre.j@dol.gov Release Number:BOS 2014-003

Date of Action:Dec. 5, 2013

Type of Action:Complaint

Name(s) of Defendant:F.V. Zanetti Inc. and Robert Zanetti

Allegations:The F.V. Zanetti Inc. Prevailing Wage 401(k) Plan was established in January 2009 to provide retirement benefits for employees of the West Haven, Conn., tile work and waterproofing contractor who were hired under federal, state and municipal prevailing wage contracts. The plan is supposed to be funded by prevailing wage fringe benefit contributions for plan participants. F.V. Zanetti, Inc. is the plan's sponsor and administrator; Robert Zanetti, company vice-president, is the plan's trustee, making them fiduciaries and parties-in-interest to the plan. In those roles, they were responsible complying with the requirements of the Employee Retirement Income Security Act.

From August 2009 to the present, Robert Zanetti failed to take appropriate measures to collect and forward to the plan $16,066 in fringe benefits contributions plus $1,600 in interest. During this same period the company and Robert Zanetti failed to file the plan's Form 5500 annual report with the U.S. Department of Labor, provide plan participants with the summary plan description and annual updates and maintain a fidelity bond to protect the plan.

Resolution:The complaint asks the court to: require the defendants to restore to the plan any and all losses incurred as a result of their breaches of their fiduciary duties and violations, plus interest; require the defendants to make appropriate allocations and disbursements to each of the plan's participants whose accounts were underfunded and then terminate the plan; and permanently enjoin the defendants from future ERISA violations.

Court:U.S. District Court for the District of Connecticut

Docket Number:13-cv-1809

U.S. Department of Labor materials are accessible at http://www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling (202) 693-7828 or TTY (202) 693-7755.

Continue reading here:
US Department of Labor files suit to recover unpaid contributions to 401(k) plan of West Haven, Conn., contractor