Pittsburgh Area Employer Ordered to Restore Nearly $35,000 to Company 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Creighton, Pennsylvania - A federal judge has ordered now defunct Orris Fuel Inc. and its controller, Victoria Skinner, to restore $34,688 in lost assets and interest to the company’s 401(k) plan.

A U.S. Department of Labor investigation found the Creighton, Pennsylvania company withheld employee contributions but failed to forward or timely remit them to the 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA), the federal law that protects private employee pension and benefit plans. Orris Fuel Inc. filed for bankruptcy in October 2005.

“Plan officials have a duty to manage and protect employees’ benefit plans and their assets,” said Mabel Capolongo, regional administrator of the Employment Benefit Security Administration’s (EBSA) Philadelphia office. “This action was taken so that the plan assets that were not properly preserved for Orris Fuel Inc.’s workers would be restored.”

The judgment, which resolves a department lawsuit filed in the U.S. District Court for the Western District of Pennsylvania in March 2006, removes Skinner and the company as fiduciaries of the plan, and appoints Jacqueline Carmichael as independent fiduciary to manage the plan. It also permanently bars Skinner and Orris Fuel Inc. from serving as trustee, fiduciary, advisor or administrator to any ERISA-covered employee benefit plan.

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 needing help with problems related to private sector retirement and health plans can reach the Philadelphia regional office at 215.861.5300 or may call EBSA’s 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 et al)
Civil Action No.: 06-0294

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Archived News Release — Caution: Information may be out of date.

Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102