U.S. Labor Department Sues to Appoint Independent Trustee for Abandoned Latham, New York, 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Albany, New York - The U.S. Department of Labor has filed suit in the U.S. District Court for the Northern District of New York to appoint an independent fiduciary to administer the abandoned 401(k) plan originally sponsored by Green Appliances Inc. of Latham, New York.

According to James Benages, regional director for the Labor Department’s Employee Benefits Security Administration (EBSA) in Boston, Green Appliances had sponsored the 401(k) plan for the benefit of its employees. At some point in the recent past, the company ceased business operations without ensuring the appointment of a fiduciary to oversee distribution of the plan’s assets to the participants.

Such action is a violation of the Employee Retirement Income Security Act. The department’s lawsuit seeks appointment of an independent fiduciary to administer the plan, distribute its assets to plan participants and beneficiaries and oversee the plan’s termination. As of April 1, 2005 the plan had 15 participants and $16,747.27 in assets with an additional $6,793.51 held in a forfeiture account. AXA Equitable Life Insurance Company Inc. is the custodian of the funds.

Said Benages, “The whereabouts of the former fiduciaries of this plan are unknown. Therefore, we are taking this legal action so that the plan’s participants can gain access to the funds that rightly belong to them.”

The department’s suit resulted from an investigation by EBSA’s Boston regional office. Employers and workers in Upstate New York can contact that office at 617.565.9600 or EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with any problems relating to private-sector pension and health plans. For more information see www.dol.gov/ebsa.

(Chao v Green Appliances 401(k) Plan)
Civil Action Number: 1:06-CV-80

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Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075