Janesville business ordered to repay 401(k) cash

By GAZETTE STAFF   Friday, April 15, 2011
ADVERTISEMENT
 

— The U.S. Department of Labor has obtained a court order requiring a former Janesville business and its owner to return more than $31,000 in employee contributions to their 401(k) plan.

The judgment, entered in U.S. District Court in Madison, resolves a lawsuit against Premier Vending and David R. Biggerstaff, the president and former owner of the company, for violations of the Employee Retirement Income Security Act.

The suit alleged that the defendants failed to remit employee contributions to the plan from Oct. 26, 2007, through Jan. 30, 2009, and to remit contributions in a timely manner from Sept. 1, 2006, through Jan. 30, 2009.

The funds were retained in Premier Vending’s general account and used to pay the company’s operating expenses, the department alleged.

The judgment stipulates that the debt to the 401(k) plan cannot be discharged as part of Biggerstaff’s personal bankruptcy proceedings. Biggerstaff filed for Chapter 7 bankruptcy Aug. 24, 2010. The judgment also appoints an independent fiduciary to administer and terminate the plan and bars Biggerstaff from serving in the future as a fiduciary to any employee benefit plan covered by the Employee Retirement Income Security Act.

The settlement orders that $31,204 in voluntary employee contributions—plus lost interest—be restored to the company’s 401(k) plan. The plan now has nine participants and $181,742 in assets.

reader COMMENTS
Click here to view reader comments
(29)
RetiredAirForce
Apr 18, 2011 at 7:54 p.m.
Suggest removal

This is a story of a person performing an illegal action. There is more history than this for him and debts. Oversight had nothing to do with it.

justmy414
Apr 18, 2011 at 5:21 p.m.
Suggest removal

My logic isn't lost. Let me spell it out for you. This business is an example of what goes wrong when businesses are allowed to do what they want with little or no regulation and oversight. Walker's plan is to "empower" businesses by "decreasing" regulation either by outright repealing the regulations, underfunding the detection and enforcement entities or placing in charge of the agency a person who has expressed a committment to favoring the businesses. This is called in intellectual circles, recognizing a pattern and being able to transpose that pattern onto a new set of circumstances. Thus this particular story is simply an example of business behaving badly, getting caught because of oversight, and having to be held responsible. Thus serving as a example of what will NOT happen when the oversight and regulations are removed or weakened.

unclesmoothie
Apr 18, 2011 at 12:16 p.m.
Suggest removal

I bet they drop the hammer on this guy. What he did is terribly wrong. But there are many other crimes that get off much easier. Good thing he wasn't molesting children. They would let him off with probation. If he would have robbed a bank to get the funds he would have gotten off with 3 years. Too bad this guy was (albeit poorly) running a business.

SwissChick
Apr 18, 2011 at 10:58 a.m.
Suggest removal

DanG - LMAO!!!! How right you are!!!

CallitasIseeit
Apr 18, 2011 at 10:20 a.m.
Suggest removal

Not "living" on either party, they both are inept and corrupt. You could learn a little about reading comprehension. It is the Federal government and the Department of Labor handling the matter. Here, I will re post the first bit of the article to help you out:

" The U.S. Department of Labor has obtained a court order requiring a former Janesville business and its owner to return more than $31,000 in employee contributions to their 401(k) plan.

The judgment, entered in U.S. District Court in Madison..."

See, Walker has no control over the matter as far as investigation or litigation in this matter.

I was only pointing out that your message is lost on this matter. Try a little "logical thinking" and post it on something that is relevant.

RetiredAirForce
Apr 18, 2011 at 10:14 a.m.
Suggest removal

justmy414 interesting. First you say "no" regulation, no messy oversight, no government looking out for the employees. Now you are try to support that claim with a speech from the governor where he said he would reduce, not eliminate, oversight.

The fact is what the business owner in the story did was already against the law. Oversight did not prevent it.

I would be glad to discuss reasonable tort reform. As it is now, the cost of litigation is so expensive, most insurance, representatives for these business, choose to settle out out of court because it is cheaper than defending real or fraudulent suits. Claiming that for any tort to succeed needs proof negates the very fact of the cost of defense. As with all business the cheapest solution is usually taken; in most cases settling regardless of circumstances.

justmy414
Apr 18, 2011 at 10:11 a.m.
Suggest removal

Correct, but Walker does have power to defund all the people who investigate, litigate and enforce the ERISA laws. If you want to break a law and believe you won't get caught, it's just that much easier for the business to break them. You should try reading a book on logical thinking. It might help you understand more than the republican sound bites you seem to live on.

CallitasIseeit
Apr 18, 2011 at 10:06 a.m.
Suggest removal

Justmy414-Walker has no power to change or ignore ERISA laws. Go find some other story to talk of deregulation, etc. The more you and others try to make every article a pro-union, anti-Walker sounding board, the less credible you look in the minds of many.

justmy414
Apr 17, 2011 at 8:41 p.m.
Suggest removal

Don't forget, it's the lack of regulation that crashed the economy in 2008. So you would rather we compete to bring a business like this one that takes the employees pension contributions, embezzles them and then declares bankrupcy. Who's your model company, Enron?

RustyRotor
Apr 17, 2011 at 7:09 p.m.
Suggest removal

After reading this post, justmy414's, I now see why other countries are getting the jobs that used to belong to us. That's right, lets regulate businesses right out of business, that is good for the economy of WI. And let's sue them into the poor house while we are at it!

justmy414
Apr 17, 2011 at 12:48 p.m.
Suggest removal

RetiredAirForce, so sorry I couldn't reply to this earlier but I had to work on Saturday, for the eight day in a row, of course I only get paid for five days a week. Part of that Walker cost savings, reduce pay, increase workload and encourage Wisconsin to treat public employees like s___.

Even if you only read the republican propaganda, which I know you do, you should have known my post was accurate. See below directly from Walker's debate speech in 2010. In his six point plan, "decrease regulation on businesses" -- that one is pretty self explanatory, but I'll make it simple for you. That means, decrease the amount of inspections, reporting, and overall requirements for businesses to report what they do to a government entity. This makes it "easier" for the business, also makes it "easier" for unethical business entities to get away with bad behavior.

Next point -- "tort reform" - this is just a bit harder, tort reform mean making it more difficult, less profitable and more expensive to hold a business responsible for wrongdoing. People usually get all excited about the publicized tort awards, but the important thing to realize is for any tort suit to suceed at all, there must be a clear duty of the business, that they knew of, and failed to perform. These awards are not for "accidents" these are for those times a business knew something bad/illegal would happen and decided to do it anyway. Wrongdoing could be many things, faulty products, fraudulent salespeople, outright fraud, failure to pay wages. Already Walker has "reformed" nursing home abuse and neglect to the point it will be very diffucult to hold nursing homes liable. "perhaps Walker was seeking to protect himeself from his understaffing of the Milwaukee County facility to the point patients were being sexually assaulted on the grounds and patients were wandering off into traffic".

Campaign debate 2010.

According to Walker, the way to create jobs within the state is to follow a six-step plan that would lower taxes, decrease government business regulations, implement tort reform, improve education, make health care more affordable and strengthen infrastructure

melstew47
Apr 17, 2011 at 1:03 a.m.
Suggest removal

well how come this wasnt disabled,like every other story? oh btw hahahahahhahaha

gmaof3
Apr 16, 2011 at 3:31 p.m.
Suggest removal

This is a case of simple fraud and theft of funds. I don't get why he isn't being given jail time! This couldn't have been a simple "oversight". It looks calculated and deliberate to me. Then, file bankruptcy? I'm glad to see he's been exposed.

tugger
Apr 16, 2011 at 3:24 p.m.
Suggest removal

This exactly why everyone should read their Social Security statements. I was ripped off for 5 years worth of FICA payments. I had worked for same company the whole time. I called SS office and I had to resolve it. Try to find W2 forms after 15 yrs have passed. Luckily I had them and could prove that I - number one worked for this business and number 2 that FICA was taken out. I can not imagine if SS did not send that statement. How many people would reach retirement age and find they had been ripped off 25 years before by a crappy employer? The guy got off. They garnished his wages as he lost the business.

DanGleesac
Apr 16, 2011 at 1:11 p.m.
Suggest removal

You idiots can turn a turd into something political. Get a life!

RetiredAirForce
Apr 16, 2011 at 10:59 a.m.
Suggest removal

fearandrhetoric4dummies obviously it went over your head. Nothing from the article was criticized. I agree all criminals should be held accountable, just like false statements should be highlighted.

CallitasIseeit
Apr 16, 2011 at 10:28 a.m.
Suggest removal

Oh, and yes, he should be fined and jailed as well. Actually I believe this may fall under one of the governments "10 year and $10,000" penalties.

Easy to find and instance of jail time as well.

http://www.dol.gov/ebsa/pdf/cepr041609a....

CallitasIseeit
Apr 16, 2011 at 10:23 a.m.
Suggest removal

fear-So you think Walker has the power to end the ERISA act in Wisconsin? You make yourself look like a fool like dtb and justmy414 with false statements and no idea what you are talking about. Google ERISA once and educate yourselves before spewing that crap. If you want to argue over what Walker is doing, fine, but try to find a valid point or two first.

fearandrhetoric4dummies
Apr 16, 2011 at 10:11 a.m.
Suggest removal

If jail isnt warranted here, what in the hell does it take to put these guys away? This guy should be serving time, PERIOD!

fearandrhetoric4dummies
Apr 16, 2011 at 9:59 a.m.
Suggest removal

RAF-read the article, isnt that proof enogh? I happen to know this clown and Ill tell you jail time IS warranted. You dont think our new "open for business" climate will protect clowns like these?

RetiredAirForce
Apr 16, 2011 at 9:51 a.m.
Suggest removal

" No regulation, no messy oversite, no government looking out for the employees."
-
Do you have any facts for this claim or are you practicing hyperbole.

justmy414
Apr 16, 2011 at 8:46 a.m.
Suggest removal

Yes, Doyle was in charge. The financial embezzlement was discovered and ordered paid back. The point is Walker's solution to everything is just make it easier for the business owner's. No regulation, no messy oversite, no government looking out for the employees. This is just another example of why oversite, regulation and government needs to be involved in business. Some, I would even venture to say many, business owners will cheat if it benefits them and they think no one will catch them. Or if they can just fire the only people who can catch them.

wislady
Apr 16, 2011 at 7:47 a.m.
Suggest removal

Oct. 26, 2007, through Jan. 30, 2009, and to remit contributions in a timely manner from Sept. 1, 2006, through Jan. 30, 2009

Look at the dates..............
I thought Doyle was in charge during those years.

dtb
Apr 15, 2011 at 7:03 p.m.
Suggest removal

A page from the walker playbook.

JohnWicket
Apr 15, 2011 at 6:01 p.m.
Suggest removal

So can you "steal" from your employee's 401(k) plan and get away with it without jail time? This may be only manipulation and not mismanagement but it destroys any trust relationship between employees and their bosses. How long will it be before others are facing personal bankruptcies?

Before you post a comment, consider this:

Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy Agreement
  • Keep it clean. Comments that are obscene, vulgar or sexually oriented will be removed. Creative spelling of such terms or implied use of such language is banned, also.
  • Don't threaten to hurt or kill anyone.
  • Be nice. No racism, sexism or any other sort of -ism that degrades another person.
  • Harassing comments. If you are the subject of a harassing comment or personal attack by another user, do not respond in-kind.  Hit the "Suggest Removal" button on offensive comments.
  • Share what you know. Give us your eyewitness accounts, background, observations and history.
  • Do not libel anyone. Libel is writing something false about someone that damages that person's reputation.
  • Ask questions. What more do you want to know about the story?
  • Stay focused. Keep on the story's topic.
  • Help us get it right. If you spot a factual error or misspelling, email newsroom@gazettextra.com or call 1-800-362-6712.
  • Remember, this is our site. We set the rules, and we reserve the right to remove any comments that we deem inappropriate.

Post Comment

Commenting requires registration.

Username:
Password: (Forgotten your password?)

Comment:

ADVERTISEMENT