U.S. Labor Department sues officers of Powell, Ohio, business for improper administration of 401(k) plan

Archived News Release — Caution: Information may be out of date.

Powell, Ohio - The U.S. Department of Labor has sued the former officers of Colonial Fireplaces LLC, in Powell, Ohio, for failing to administer and terminate the defunct company’s 401(k) plan so that assets could be distributed to participants.

“The department will act when plan fiduciaries violate their duty to protect retirement assets held on behalf of participants,” said Joseph Menez, director of the department’s Employee Benefits Security Administration (EBSA) regional office in Cincinnati.

The lawsuit alleges that plan administrators Whitney B. Davis and Ottis D. Davis failed to take responsibility for terminating the plan and distributing its assets to beneficiaries and participants when the company ceased operations. The suit seeks to appoint an independent fiduciary to manage the plan, terminate it and distribute assets to eligible participants and beneficiaries.

Employers and workers can reach EBSA’s Cincinnati Regional Office at 859.578.4680 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. 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.

Chao v. Davis
Civil Action Number 2:07-cv-236

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Archived News Release — Caution: Information may be out of date.