U.S. Labor Department sues to appoint independent fiduciary for 401(k) plan abandoned by Morrow, Georgia, automotive repair company

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has filed a lawsuit asking the U.S. District Court for the Northern District of Georgia to appoint an independent fiduciary to oversee the abandoned 401(k) plan of defunct TDH Enterprise Corp. of Morrow, Georgia.

The company was administratively dissolved in July 2005. When it ceased operations, the automotive repair company failed to terminate the plan and ensure that funds were distributed to participants. The plan’s fiduciary, Barry Grosselin, has failed to administer the plan since that time.

“When a plan is abandoned, so are the workers who invested in it,” said Howard Marsh, regional director of the Labor Department’s Employee Benefits Security Administration (EBSA) in Atlanta. “The department took this legal action so that the plan will be properly managed and its participants can access the funds that rightly belong to them.”

The department’s suit asks the court to appoint an independent fiduciary to administer the plan, distribute its assets to eligible participants and beneficiaries, and terminate the plan. As of October 2006, the plan had five participants and $12,669 in assets. Paychex is the custodian of the funds.

Employers and workers can reach EBSA’s Atlanta office at 404.302.3900 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. TDH Enterprise Corp.
(Civil Action File Number 1:07-cv-1764)

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Archived News Release — Caution: Information may be out of date.