Labor Department Files Suit To Aid 'Orphaned' 401(K) Plan Participants

Archived News Release — Caution: Information may be out of date.

New York, New York - The U.S. Department of Labor filed a lawsuit on October 5 seeking the appointment of an independent fiduciary with authority to manage, terminate and distribute assets to retirement participants of the CCS Technologies 401(k) plan located in New York, New York.

CCS Technologies, Inc. was in the business of computer and information technologies. The 401(k) plan became an orphan plan after the company and its president, John Ruffo, failed to appoint a trustee to succeed Ruffo after his conviction in March 1996 on criminal charges of bank, wire and mail fraud. Ruffo, the plan's sole trustee, failed to surrender to authorities on November 9, 1998 to serve his prison sentence, and is believed to be in hiding, possibly abroad

Plans become orphan plans when they are abandoned by all plan fiduciaries designated to manage and operate the plans and their assets. As a result, participants and beneficiaries are unable to receive pension distributions and to make inquiries about their benefits.

The Labor Department filed a lawsuit alleging the plan was left without a trustee, failure to appoint a successor trustee to administer the plan, and failure to terminate the plan and distribute its assets to participants. As of August 20, 2001, the plan covered 17 participants and approximately $107,000 in assets.

“Our goal is to assure that consumers know that the department is only a phone call away to help protect the benefits promised by employers," said Francis Clisham, director of the New York Regional Office of the Labor Department’s Pension and Welfare Benefits Administration (PWBA). “Employers and workers can reach us at 212.337.2228 for help with any problems relating to private-sector pension and health plans.”

The court action resulted from an investigation conducted by the New York Regional Office of PWBA into alleged violations of the Employee Retirement Income Security Act.

(Chao v. CCS Technologies, Inc. 401(k) Plan
Civil Action No. 01-8931)

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Archived News Release — Caution: Information may be out of date.