Labor Department Sues New Jersey Bakery Firm and Executive Over Misuse of Health Plan

Archived News Release — Caution: Information may be out of date.

New York, New York - The U. S. Department of Labor sued Conolly, Calhoun & Conolly, Inc. of Pennsauken, New Jersey and its chief executive officer on May 4, 2001 for failure to forward employee contributions to the company’s cafeteria health plan. The firm sponsored and served as plan administrator of the plan until May 1998.

According to the lawsuit, defendants Vincent Acerbo and Conolly, Calhoun & Conolly violated the Employee Retirement Income Security Act (ERISA) by failing to remit contributions deducted from employee paychecks to the cafeteria plan. The cafeteria plan provided health benefits or cash equivalents to employees of the company.

As relief, the lawsuit asks the court to require that Acerbo and the firm restore to the plan all losses with interest or lost opportunity costs and to permanently bar Acerbo from serving in a position of trust to any plan governed by ERISA.

The lawsuit was filed in federal district court in Camden, New Jersey.  The court action resulted from an investigation conducted by the Philadelphia Regional Office of the Department’s Pension and Welfare Benefits Administration into alleged violations of ERISA. A second action is also pending in the federal district court concerning the defendants' failure to forward employee contributions to the company's 401(k) plan.

“This action reaffirms our commitment to protect the hard-earned benefits promised by employers,” said Mabel Capolongo, Director of PWBA’s Philadelphia Regional Office. “Employers and workers can reach us at 215.861.5300 for help with any problems relating to private-sector pension and health plans.”

(Chao v. Acerbo
Civil Action No. 01-CV2139)

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Archived News Release — Caution: Information may be out of date.