Labor Department Secures Agreement for Reimbursement of More Than $33,000 for 401(k) and Profit Sharing Plan Participants at Defunct Bucks County Business

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - Douglas Daly, former owner and president of Integrated Metal Fabrications, Inc. (IMF), has agreed to restore $33,269 in lost assets and interest to the company’s 401(k) and Profit Sharing Plan. The Bucks County, Pennsylvania company ceased operations in August 2005.

An investigation conducted by the Philadelphia office of the Labor Department’s Employee Benefits Security Administration’s (EBSA) determined that in December 2005, Daly, the plan’s trustee, liquidated all assets from the plan’s account and deposited them into a general corporate account in violation of the Employee Retirement Income Security Act (ERISA). To date, Daly has not restored the assets to the plan.

According to a consent judgment filed in the U.S. District Court for the Eastern District of Pennsylvania, Daly must restore $32,097 in assets and $1,172 in interest to make full restitution to the plan; and is permanently prohibited from serving as a trustee, fiduciary, advisor or administrator to any ERISA-covered benefit plan. The judgment also authorizes Jacqueline M. Carmichael, the plan’s independent fiduciary to redistribute the assets to plan participants. Daly will cover all expenses of the independent fiduciary.

“This action demonstrates our commitment to protect the interests of participants when plan trustees act in breach of their fiduciary responsibilities,” says Mabel Capolongo, regional administrator of the Philadelphia EBSA 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 with questions or concerns regarding their private-sector pension and health plans can contact EBSA’s regional office in Philadelphia at 215.861.5300 or EBSA’s toll free number, 1.866.444.EBSA (3272).

(Chao v. Daly, et. al)
Civil Action No.: 2:06-cv-3124

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Archived News Release — Caution: Information may be out of date.

Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102