U.S. Labor Department obtains appointment of independent fiduciary for abandoned Mineola, N.Y., 401(k) plan

Archived News Release — Caution: Information may be out of date.

New York – The U.S. Department of Labor has obtained a federal court order appointing an independent fiduciary to manage the abandoned 401(k) plan of Hagedorn Actuarial Services Inc., Mineola, New York.

The Labor Department filed suit last October alleging that a successor fiduciary was not appointed after plan trustee William Lambiase pleaded guilty to embezzlement of $16,000 in plan assets in August 2005. Since that time, the plan’s participants and beneficiaries have been unable to gain access to or obtain information about their individual account balances.

Plans become “orphan plans” when they are abandoned by all fiduciaries designated to manage and operate them. As of August 2006, the plan had approximately $48,446 in assets being held by custodian American Funds Group.

“The department took legal action to ensure that the participants receive their promised benefits,” said Jonathan Kay, director of the New York Regional Office of the department’s Employee Benefits Security Administration (EBSA), which investigated the case.

The court order, issued by the U.S. District Court for the Eastern District of New York, appoints Herbert A. Whitehouse as the independent fiduciary of the plan. Whitehouse will administer the plan; distribute the assets to participants, beneficiaries and any plan creditors; and terminate the plan.

In fiscal year 2006, EBSA achieved record monetary results of $1.4 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can contact EBSA’s New York Regional Office at 212.607.8600 or EBSA’s toll-free number at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans.

Chao v. Hagedorn Actuarial Services, Inc. 401(k) Profit Sharing Plan
Civil Action Number: 2:06-CV-05733-LDW-ARL

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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