U.S. Labor Department Sues to Appoint Independent Trustee for Abandoned White Plains, N.Y., 401(k) Plan

Archived News Release — Caution: Information may be out of date.

New York, New York - The U.S. Department of Labor has filed suit in the U.S. District Court for the Southern District of New York to appoint an independent fiduciary to administer the abandoned 401(k) plan originally sponsored by WP Ford LLC of White Plains, New York.

According to Jonathan Kay, regional director for the Labor Department’s Employee Benefits Security Administration (EBSA) in New York City, the company sponsored the WP Ford LLC, WP Cadillac LLC & WP Daewoo LLC 401(k) plan for the benefit of its employees. The company operated under the names Key Ford and Key Auto Used Car Superstore. At some point in the recent past, the company ceased operations without appointment of a fiduciary to oversee distribution of plan assets to the participants, a violation of the Employee Retirement Income Security Act (ERISA).

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 June 30, 2004, the plan had 14 participants and $182,804 in assets. The Guardian Insurance & Annuity Company Inc. is the custodian of the funds.

Said Kay, “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 New York regional office. Employers and workers can contact that office at 212.607.8600 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 WP Ford LLC, WP Cadillac LLC & WP Daewoo LLC, 401(k) Plan)
Civil Action Number: 06-CV-0687

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Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075