U.S. Labor Department Settlement Restores Funds To Livonia, Mich. Workers' 401(k) Plan

Archived News Release — Caution: Information may be out of date.

LIVONIA, Mich. - The U.S. Department of Labor has obtained a settlement restoring $46,925 to the Crudo Brothers Company Inc. 401(k) plan and permanently barring plan fiduciary Fernanda Crudo from serving in a fiduciary capacity or as a service provider to any employee benefit plans governed by the Employee Retirement Income Security Act (ERISA).

"The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants," said Joseph Menez, director of the department's Cincinnati regional office of the Employee Benefits Security Administration (EBSA).

The settlement resolves a Labor Department lawsuit filed in federal district court in Detroit. The court also appointed an independent fiduciary to administer and terminate the 401(k) plan, including the disbursement of benefits to participants or beneficiaries.

The suit alleged that Crudo and the Livonia, Mich. based company, Crudo Brothers Company Inc., violated ERISA by failing to forward to the 401(k) plan contributions withheld from employees' paychecks in May 2001 and from October 2001 through September 2002.

The settlement resulted from an investigation conducted by the Cincinnati regional office of the EBSA.

Employers and workers can reach the Cincinnati regional office at (859) 578-4680 or through EBSA's toll-free number, (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 the pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Crudo)
Civil Action No. 2:04-cv-75032

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976