Labor Department Sues Houston-Based Staffing Firm

By Staff Report

Nov. 22, 2010

The Labor Department sued a Houston-based staffing firm and its owner for misuse of 401(k) plan assets. The move came as part of a series of enforcement actions announced this week by the agency.

NSC Companies Inc., of Houston, and owner Patricia Thompson allegedly failed to remit and timely forward employee contributions to the firm’s 401(k) plan, protect or collect employee contributions owed and properly administer the plan, according to the Labor Department. The defendants also allegedly used the assets to benefit the company.

In the court case, the agency seeks to require defendants to repay losses to the plan with interest, correct any transactions prohibited by law and appoint an independent fiduciary to oversee plan assets. The lawsuit also seeks to permanently bar the defendants from serving in a fiduciary capacity in any plan governed by the Employee Retirement Income Security Act.

NSC provided information technology professionals, and it is unclear whether the firm is still in operation, according to the agency. The 401(k) plan had 46 participants and $230,548.16 in assets as of November 2009.

A telephone number listed on NSC’s Web site was no longer in service. 

Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail


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