US - Lodging and Gaming Systems (LGS) owner Steven Urie has been ordered to pay nearly US$170,000 into the bankrupt firm's 401(k) plan after he was sued by the Department of Labor (DoL).
A DoL investigation revealed Urie had failed to collect delinquent employer contributions and to forward to the plan employee contributions and loan repayments deducted from employee paychecks during 2000, 2001 and 2003.
According to the DoL, Urie used the money to pay corporate debts and expenses after the corporation and two other companies he owned experienced financial problems.
The company’s plan covered 34 participants and had $755,428 in assets during 2002.
Employee Benefits Security Administration assistant secretary of labor Ann Combs [pictured] said: “We are very pleased to have successfully restored the full amount due these workers. This action demonstrates the department’s commitment to protect the retirement benefits of America’s workers.”
During proceedings, the US bankruptcy court ruled the debt to the plan was not dischargeable, and held Urie responsible for the full $167 530 that had not been forwarded to the plan’s account.
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