U.S. Labor Department Obtains Default Judgment Removing Fiduciary from Oakland County, Michigan Company’s 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Detroit, Michigan - The U.S. Department of Labor has obtained a default judgment removing the former president of now-defunct Application Technology Group Inc. (ATG), Oakland County, Michigan, as a fiduciary to the ATG 401(k) plan, and permanently barring Kenneth A. Poulos from serving as a plan fiduciary to any Employee Retirement Income Security Act (ERISA)-covered employee benefit plan.

The judgment, entered in the federal district court in Detroit, also names an independent fiduciary to administer and disburse the assets of the plan to entitled participants and beneficiaries.

“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 default judgment resolves a complaint filed by the U.S. Labor Department that alleged Poulos had not taken responsibility for operation of the plan and its assets since approval of a participant distribution November 7, 2004. Poulos had responsibility for distributing accrued funds in the plan to persons entitled to those funds.

Employers with similar problems, who are not yet the subject of an investigation by EBSA, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as applicable excise taxes. For more information about the VFCP see www.dol.gov.ebsa.

The suit resulted from an investigation conducted by the Cincinnati district office of EBSA. Employers and workers can reach the Cincinnati regional office at 859.578.4680 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 the pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Poulos)
Civil Action No. 06-10124

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976