Cardservice of Virginia Inc. has been ordered to pay approximately $80,000 to it's employees 401 (k) plan because the owner failed to put his employee's money into the account. The United States Department of Labor said that it secured a consent judgment, demanding that Cardservice of Virginia Inc. pay out more than $77,000, including $21,904 to restore the 401 (k) assets, and $51,725.27 in prejudgment interest. The owner, Richard Yanek, was hit with a $3,877 judgment to hire a plan administrator, and a $15,501 penalty.
The US Department of Labor said that between, January 2001 and April 2001, Cardservice deducted money from employees' paychecks that was to be deposited in the plan and they failed to separate the plan's assets from the general assets of the business. The judgment is a result of a lawsuit filed by the US Department of Justice on January 4, against the company in the United States District Court.
<http://insidebiz.com/news/beach-firm-must-pay-almost-80k-401k-suit>
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