Rockville, Maryland Companies and Owner Are Barred From Serving as Fiduciary to Benefit Plans Nationwide

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - A federal judge has barred Plan 3 Inc., Plan 3 Technologies, and owner Dennis Kelly from serving for 15 years as fiduciaries to employee benefit plans covered by the federal Employee Retirement Income Security Act (ERISA). The U.S. Department of Labor alleged that the Rockville, Maryland companies and Kelly violated ERISA when they failed to properly administer health and welfare plans across the country.

A consent order, filed in the U.S. District court for the District of Maryland, resolves a lawsuit filed by the Labor Department in June 2005. The order prohibits the companies and Kelly from serving in any capacity that involves decision-making authority or custody or control of the assets of employee benefit plans other than those sponsored by companies owned by Kelly.

“The law clearly requires those who administer employee benefit plans to do so in a careful, and prudent manner,” said Mabel Capolongo, regional director of the Philadelphia office of the Employee Benefits Security Administration (EBSA). “This consent order clearly demonstrates what can happen when fiduciaries break that trust.”

The suit resulted from an investigation conducted by the EBSA Washington district office. Employers and workers can reach EBSA at 301.713.2000 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.

(Chao v. Kelly)
Civil Action No.: PJM 05-CV-1646

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Archived News Release — Caution: Information may be out of date.

Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102