Retirement Savings Misuse Lawsuit
August 14, 2009 by Stephen Kersey
Filed under Finance
Vinyl-Mark Products, a defunct corporation that was headquartered in Alabama, is being sued by the United States Department of Labor for misusing the retirement savings of its employees. Instead of using the savings for their intended purpose, the corporation allegedly used the money to aid the company.
Phyllis C. Borzi of the Employee Benefits Security Administration of the U.S. Labor Department said that this sort of misuse is unacceptable.
Said Borzi: “The department will not tolerate the misuse of workers’ retirement savings to subsidize corporate expenses. Our legal action is designed to ensure these workers are made whole and prevent the trustees from misusing employee benefit plan assets in the future.”
The violations supposedly took place between 2004 and 2007. Two trustees were named in the lawsuit — Jessie Mae Baily and Willard D. Baily, Jr. In total, nearly $900,000 is in question.
Vinyl-Mark Products distributed vinyl siding and accessories on a wholesale basis.
Department of Labor Building (Image: Flickr)
