The U.S. Department of Labor (DOL) has filed a complaint in the U.S. District Court of Colorado against Central Security Communications Inc., CEO Robert Millikin, and fiduciary Howard Klinger to restore more than $82,000 owed to the Greeley, Colorado-based company’s retirement and health plans, as well as additional lost income, according to a new DOL press release.
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The department’s lawsuit asserts that the security and alarm monitoring company, Millikin, and Klinger, violated the Employee Retirement Income Security Act of 1974 (ERISA) by not making employee retirement contributions and health insurance premiums to the employee retirement and health plans. The lawsuit also alleges the defendants did not collect delinquent outstanding loan repayments owed to the retirement plan.
The DOL seeks a court order that would:
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Require the company, Millikin, and Klinger to restore all plan losses with interest.
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Appoint an independent fiduciary to administer the plans.
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Bar Millikin and Klinger from serving as fiduciaries to any employee benefit plan.
“Central Security Communications and its fiduciaries had a duty to manage and protect the employees’ benefit plans and their assets, yet they failed to do so,” said Mark Underwood, acting director of the Kansas City Regional Office of the department’s Employee Benefits Security Administration. “The department will take every action necessary to restore plan assets that were not preserved properly for the company’s workers.”