U.S. Labor Department Sues Pennsylvania Company Over Pension Plan Violations

Archived News Release — Caution: Information may be out of date.

Philadelphia - The U.S. Department of Labor sued Nations Financial Group Inc., Seven Fields, Pennsylvania, its president Mark Damiani and corporate secretary Valerie Damiani over failure to remit contributions and loan repayments deducted from employees’ paychecks to the company’s 401(k) profit sharing plan.

The lawsuit alleges that the company and the Damianis violated the Employee Retirement Income Security Act (ERISA) when they failed to forward certain plan contributions and loan repayments deducted from employees’ paychecks and to remit other contributions and repayments in a timely manner from January 2002 through July 2005.

“This legal action should put employers and plan sponsors on notice that this department will not hesitate to enforce the law to ensure that workers receive the benefits to which they are entitled,” said Mabel Capolongo, regional director in Philadelphia of the department’s Employee Benefits Security Administration (EBSA).

Filed in U.S. District Court for the Western District of Pennsylvania, the suit seeks a court order to remove the company and the individual defendants as plan fiduciaries; to require them to restore any losses to the plan plus lost opportunity costs; and to appoint an independent fiduciary to terminate the plan. The suit also asks that the defendants be permanently barred from serving as fiduciaries to any plan in the future.

The suit resulted from an investigation conducted by EBSA’s Philadelphia regional office. Employers and workers needing help with problems related to private-sector retirement and health plans can reach the regional office at 215.861.5300 or they may call EBSA’s toll-free number 1.866.444.EBSA (3272).

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. Information on EBSA is available from the agency’s Web site www.dol.gov/ebsa.

(Chao v. Damiani)
Civil Action No. 2:06-cv-1703

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Archived News Release — Caution: Information may be out of date.