U.S. Labor Department obtains consent judgment restoring assets to Pennsylvania 401(k) profit-sharing plan

Archived News Release — Caution: Information may be out of date.

Philadelphia - The U.S. Department of Labor has obtained a consent judgment requiring Nations Financial Group Inc., Seven Fields, Pennsylvania, and the trustees of its 401(k) profit-sharing plan to restore $14,475 to the plan to resolve a lawsuit alleging violations of the Employee Retirement Income Security Act.

“This legal action underscores the Labor Department’s commitment to protect the hard-earned benefits of workers who invest in retirement plans,” said Mabel Capolongo, regional director of the department’s Employee Benefits Security Administration (EBSA) in Philadelphia.

The department sued Mark Damiani and Valerie Damiani in federal court for the Western District of Pennsylvania for failing to remit employee contributions and loan repayments deducted from employees’ paychecks and to timely forward contributions and repayments from January 2002 through July 2005.

In addition to the restitution, the judgment removes the defendants from service as plan trustees. The judgment also requires them to pay $5,000 for the services of an independent fiduciary to terminate the plan and permanently bars them from serving as fiduciaries of any other employee benefit plan.

Former participants of the Nations Financial Group 401 (k) plan should contact the independent fiduciary at JM Pension Advisory Inc., 15807 Crabbs Branch Way, Suite B, Derwood, Maryland, or by telephone at 301.417.0099, for further information.

This case resulted from an investigation conducted by EBSA’s Philadelphia Regional Office. 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 EBSA’s Philadelphia office at 215.861.5300 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector pension and health plans.

Chao v. Nations Financial Group Inc.
Civil Action Number 06-01703

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Archived News Release — Caution: Information may be out of date.