Labor Department Sues Florida Corporation President for Abandonment of 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Atlanta, Georgia - The U.S. Department of Labor sued the president of defunct TM Analytic, Inc. in Tampa, Florida, on March 24, for abandoning the corporation’s 401(k) plan by failing to properly terminate the plan and distribute its assets to the participants and beneficiaries.

“When the defendant abandoned the plan, participants were unable to receive pension distributions or make inquiries about their benefits,” said Howard Marsh, director of the Atlanta regional office of the department’s Employee Benefits Security Administration (EBSA), that investigated the case.

The suit alleges that Donald L. Helman, the company president and plan fiduciary, violated the Employee Retirement Income Security Act (ERISA) when he failed to terminate the plan and distribute the assets.

The suit seeks to remove Helman as plan fiduciary, permanently bar him from serving any employee benefit plan subject to ERISA, and appoint an independent fiduciary to terminate the plan and distribute its assets to the participants and beneficiaries.

TM Analytic was an Illinois corporation registered as a foreign corporation in Florida. As of June 2002, the plan had 16 participants and assets totaling $388,298.90. The corporation ceased operations in 2001.

Employers and workers can reach EBSA’s Atlanta regional office at 404.562.2156 or through its toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector pension and health plans.

(Chao v. Donald L. Helman
Civil Action No. 8:03-CV-518-T-27-EAJ)

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Archived News Release — Caution: Information may be out of date.