Local Architectural Firm Sued by Department of Labor

The U.S. Department of Labor is suing Tucker architectural company Milton Pate and Associates for the recovery of $135,516 the department alleges was improperly taken from the company’s 401(k) plan.

The lawsuit alleges that the defendants took prohibited loans from the plan, violating the Employee Retirement Income Security Act.

According to a Department of Labor press release, the department’s Employee Benefits Security Administration alleges that Milton Pate Sr. and Milton Pate Jr. have outstanding balances of $94,778 and $38,938, respectively, on loans they borrowed from the company’s profit-sharing plan. In addition, EBSA alleges that employee contributions to the plan between January 2007 and August 2008 were not forwarded in a timely manner, costing $1,800 in earnings.

Michael D'Aquino from DOL told Patch that of the loans in question, three were taken out on July 21, 1998 and another was taken out June 8, 2000.

Milton Pate Jr. was not aware of the lawsuit and had no comment at this time.

In the release, EBSA’s acting regional director Isabel Colon was quoted as saying, “Retirement assets are not a piggy bank to be raided whenever the principals of a company need extra cash. Employees contributed the assets for their future retirement needs, and the Labor Department will not allow fiduciaries to disregard their responsibilities.”

In addition to restoring all losses to the 401(k) plan, the Department of Labor is seeking to have the defendants removed from their fiduciary roles and barred from serving as fiduciaries in the future.

The lawsuit is filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division. EBSA’s Atlanta Regional Office conducted the investigation leading to the suit.