U.S. Labor Department Sues to Appoint Independent Fiduciary for Manchester, Missouri, Company’s 401(k) Plan

Archived News Release — Caution: Information may be out of date.

St. Louis, Missouri - The U.S. Department of Labor has filed a lawsuit in the U.S. District Court for the Eastern District of Missouri to appoint an independent fiduciary to administer the abandoned 401(k) plan originally sponsored by Dave Godat Auto Body Inc. of Manchester, Missouri.

According to Steve Eischen, regional director for the U.S. Labor Department’s Employee Benefits Security Administration (EBSA) in Kansas City, Dave Godat Auto Body sponsored the 401(k) plan for the benefit of its employees as well as the employees of a related company, Auto Trim Design. The company ceased operations in 2005 and both auto body shops closed.

Dave Godat, the plan’s trustee, failed to administer the plan or appoint an administrator for the benefit of the 401(k) plan participants and beneficiaries after the businesses closed, a violation of the Employee Retirement Income Security Act.

The department’s lawsuit seeks to remove Godat and to appoint G Trust of Topeka, Kansas, as an independent fiduciary to administer the plan, distribute its assets to plan participants and beneficiaries, and oversee its termination. The plan has 21 participants and $107,423 in assets. American United Life Insurance Company of Indianapolis, Indiana, is the custodian of the funds.

“We are taking this legal action so that plan participants can gain access to the funds that rightfully belong to them,” Eischen said.

The department’s suit resulted from an investigation by EBSA’s Kansas City regional office. In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can contact the Kansas City office at 816.426.5131 or EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans. For more information, visit www.dol.gov/ebsa.

(Chao v. Godat)
Civil Action No. 4:06CV409TCM

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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

Contact Name: Norma J. Conrad
Phone Number: 816.426.5481