U.S. Labor Department Sues East Walpole, Massachusetts, Company and President to Recover Employer Contributions to Retirement Plan

Archived News Release — Caution: Information may be out of date.

Boston - The U.S. Department of Labor has sued East Walpole, Massachusetts-based MPF Corp. and company president Michael P. Federico for failure to forward more than $260,000 in employer contributions to the MPF Corp. Retirement Plan.

The lawsuit, filed in U.S. District Court for the District of Massachusetts, alleges that the defendants violated the Employee Retirement Income Security Act (ERISA) by failing to remit to the company’s retirement plan contributions owed as fringe benefits for employees performing work under state prevailing wage laws. The company is in the business of installing underground utility and sewer systems. The period covered by the lawsuit is April 1, 1998 through March 31, 2002.

The department’s lawsuit seeks a court order to require the defendants to restore all of the principal and interest owed to the plan and to permanently bar them from serving as fiduciaries or service providers to any other plan covered by ERISA.

“Plan officials have a legal obligation to make required contributions in order to pay the future benefits of workers,” said Bradford P. Campbell, acting assistant secretary of the Labor Department’s Employee Benefits Security Administration (EBSA). “This case demonstrates our commitment to hold accountable those who do not fulfill their duties to employee benefit plans.”

The suit resulted from an investigation conducted by the regional office of EBSA in Boston and the lawsuit was filed by the Labor Department’s regional Solicitor of Labor’s office in Boston. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can contact the Boston EBSA office at 617.565.9600 or may call EBSA’s toll-free number 1.866.444.EBSA (3272) for help with any problems relating to private-sector pension and health plans.

(Chao v. Michael P. Federico)
Civil Action Number: 06-CV-12313-RGS

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Archived News Release — Caution: Information may be out of date.