David Pitt, AP Personal Finance Writer
The Department of Labor says the recession is financially stressing business owners, and in a few cases they're pilfering employee contributions to 401(k) and health benefits accounts.
The department said Wednesday it has filed civil lawsuits against 24 companies and business owners alleged to have kept money withheld from paychecks that was meant for retirement or health accounts.
"We've seen an increase in the number of these cases as economic times get more difficult and companies are struggling," said Phyllis Borzi, the assistant secretary of labor.
The agency oversees 708,000 pension plans and 2.5 million health plans in addition to a few million life insurance, short-term disability, and similar plans.
The companies range in size, from fewer than 10 workers to more than 100.
The largest case involves more than $6 million in worker contributions. It is filed against Northern Rhode Island Anesthesia Associates PC and its owner. The Labor Department alleges contributions to the company's pension plan were not deposited into the plan and were used to benefit the company, which had subsidiaries in Massachusetts and Rhode Island.
The owner filed for bankruptcy protection in December 2008, the Labor Department said.
The cases are listed on the department's website.