Man To Pay Back Misused Retirement Funds
The trustee of a defunct Phillipston-based auto dealer's 401(k) plan has reached a deal with federal officials to pay back $16,584 the government says he used to fund company obligations.
The settlement resolves a lawsuit that the U.S. Department of Labor filed last year in U.S. District Court in Worcester against Christopher Wong of Wong's Motor Corp., which formerly did business as Athol Ford and Mercury.
The Employee Benefits Security Administration (ERISA), which oversees approximately 708,000 private sector retirement plans, alleged that Wong had failed to forward employee 401(k) contributions that were withheld from their paychecks between Jan. 5 and Oct. 12, 2007.
Under terms of the settlement, the money will be returned to the accounts of the plan participants and Wong will be permanently forbidden from serving as a fiduciary to any ERISA-covered plan.
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