The 401(k) plan trustees of Preferred Mold & Engineering Inc., Aurora, Colo., were sued by the Labor Department for failure to deposit $4,835 in employee contributions.
The lawsuit, filed in federal district court in Colorado, alleges that brothers Mark and James Ziemer were company co-owners and trustees for the $139,000 plan. From Nov.1, 1998, to Dec. 31, 1998, money was withheld from employees’ paychecks but participants’ contributions were not transferred to the 401(k) plan, the lawsuit alleges. The suit asks the court to require the plan trustees to restore the money with interest to the plan or its participants, to undo any prohibited transactions and to terminate the plan after distribution of all assets to participants.
