U.S. Department of Labor secures $20,000 for participants of Delmont, Pennsylvania 401(k) plan

Archived News Release — Caution: Information may be out of date.

Delmont, Pennsylvania – Michael Rizzi, trustee of the Lomik Construction Corp.’s 401(k) profit-sharing plan in Delmont, has agreed to restore $20,000 to the plan to resolve a lawsuit filed by the U.S. Department of Labor.

The Labor Department filed suit against Rizzi after an investigation conducted by the department’s Employee Benefits Security Administration (EBSA) found that he failed to remit employee contributions to the plan, remitted contributions late without adding interest and retained the contributions in the company’s general assets from the time of the plan’s inception in 2002 until October 2004.

“Trustees of 401 (k) plans have certain responsibilities to ensure that the assets of the plan are used solely to benefit participants. One of the most important is putting money from workers’ wages into their 401 (k) accounts on time,” says Mabel Capolongo, administrator of EBSA’s Philadelphia Regional Office. “This case underscores the Labor Department’s commitment to take whatever action is necessary to protect plan participants.”

In addition to restoring plan funds, judgments filed in the U.S. District Court for the Western District of Pennsylvania remove Rizzi and Lomik Construction as fiduciaries for the plan, prevent them from being fiduciaries or trustees in the future, and appoint an independent fiduciary to oversee the plan.

Employers and workers can reach 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 retirement and health plans. Information is also available from the agency’s Web site at www.dol.gov/ebsa. 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. Rizzi
Civil Action Number: 2:06-cv-711

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.