April 4, 2014 (PLANSPONSOR.com) – The U.S. Department of Labor (DOL) has filed a lawsuit to recover losses to the Cargill Heating & Air Conditioning Co. Inc. Savings Plan in La Crosse, Wisconsin.
to the DOL, Michael Earl Galstad was president and majority owner of Cargill
Heating & Air Conditioning Co. and failed to remit $27,812.90 in employee
contributions to the plan from June 25, 2009, to April 12, 2012. The contributions
remained in the company’s general funds for its use. Galstad restored
$23,657.86 in unremitted employee contributions to the plan; however, $4,155.04
in employee contributions remains outstanding.
pursuant to several state and federal contracts subject to the Davis Bacon Act,
Service Contract Act, or state prevailing-wage laws, Cargill and Galstad agreed
to pay employer contributions as prevailing-wage fringe benefits to the plan.
Between June 30, 2009, and April 30, 2012, $236,738.12 in prevailing wage
contributions was owed to the plan. Galstad remitted $38,500 to the plan;
however, the remaining $198,238.12 remains outstanding.
Cargill and Galstad
also failed to collect employer contributions owed to the plan from May 31,
2008, through May 31, 2010, resulting in a loss of $59,009.31 to the plan.