Facts

Defendant Young Jin Lee owned defendant Gene Shawn Group dba A-Q Dental Laboratory. The company had a 401(k) profit sharing plan. Defendant Juliette Myung Lee was employed by Gene Shawn Group and had discretionary authority over the 401(k) plan. The Gene Shawn Group 401(k) plan went into effect on July 1, 2001 and was offered to all employees. Between June 2005 and February 2007, $26,388 was withheld from employees' earnings for 401(k) contributions and $1,558 was withheld from employees' earnings for loan repayments to the 401(k) plan.

Plaintiff Elaine Chao, Secretary of Labor, filed suit against defendants for violations of ERISA.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that defendants retained and commingled the employee's withheld funds with company funds.

DEFENDANTS' CONTENTIONS:
The defendants denied all allegations.

Result

The plaintiff accepted a settlement of $32,587 and Young Jin Lee and Juliette Myung Lee were enjoined from acting as a fiduciary on any future ERISA-covered employee benefit plans.

Other Information

FILING DATE: Nov. 14, 2008.