U.S. Labor Department Sues Pittsburgh Area Employer To Restore Funds To 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - The U.S. Department of Labor has sued now-defunct Orris Fuel Inc., Creighton, Pennsylvania, and its controller, seeking restoration of funds to the company’s 401(k) plan.

According to Mabel Capolongo, regional director for the department’s Employee Benefits Security Administration (EBSA), the suit was filed in U.S. District Court for the Western District of Pennsylvania against Victoria Skinner whose company, Orris Fuel, filed for bankruptcy in October 2005.

The lawsuit alleges that the defendants withheld employee contributions but either failed to forward or timely remit them to the 401(k) plan, a violation of the Employee Retirement Income Security Act (ERISA), the federal law that protects private employee pension and benefit plans.

“This legal action should put employers and plan sponsors on notice that we will not hesitate to resort to litigation to enforce the law and ensure that workers receive the benefits to which they are entitled,” said Capolongo.

The department’s suit asks the court to order Skinner and Orris Fuel to restore to the plan all losses, including interest; name an independent fiduciary to administer the plan, distribute its assets and terminate it; and permanently bar the defendants from serving as fiduciaries to any employment benefit plan covered by the law.

The Labor Department’s legal action resulted from an investigation conducted by EBSA’s Philadelphia 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 EBSA through its toll-free number, 1.866.444.EBSA (3272), for more information on the requirements of ERISA. Additional information can be found at www.dol.gov/ebsa.

(Chao vs. Skinner, Orris Fuel, Inc.)
Civil Action No. 06-0294

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Archived News Release — Caution: Information may be out of date.

Contact Name: Kate Dugan
Phone Number: 215.861.5101