U.S. Labor Department Obtains Settlement Barring Pocono Pines, Pa. Company From Overseeing Employees’ Benefit Plans

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - The U.S. Department has obtained a settlement permanently barring Austin James Associates, Inc. (AJA) and its president, Curtis M. Herman from serving as fiduciaries to employee benefit plans governed by the Employment Retirement Income Security Inc.

“The department will take action when plan fiduciaries fail to protect the retirement plan assets they hold on behalf of participants,” said Mabel Capolongo, director of the department’s Philadelphia regional office of the Employee Benefits Security Administration (EBSA).

The settlement resolves a lawsuit filed by the Labor Department in March 2006 alleging that the company failed to timely remit employee contributions to its 401(k) retirement savings plan. The consent judgment removes Herman and AJA as plan fiduciaries and appoints an independent fiduciary to manage the plan.

The suit resulted from an investigation conducted by EBSA’s Philadelphia regional office. Employers and workers can reach the Philadelphia office at 215.861.5300 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans. 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 families.

(Chao v. Curtis M. Herman, et. al.)
Civil Action No. 3:06-cv-512

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Archived News Release — Caution: Information may be out of date.

Contact Name: Kate Dugan
Phone Number: 215.861.5101