Willow Grove, Pennsylvania company ordered to restore more than $150,000 to 401(k) plan, resolving U.S. Labor Department lawsuit

Archived News Release — Caution: Information may be out of date.

Willow Grove, Pennsylvania – A federal judge has ordered the McFaul & Lyons Group LLC, and its chief executive officer and trustee, James Edler, to restore $153,111 in losses and interest to the company’s 401(k) plan.

The U.S. Department of Labor filed suit against the company in February after an investigation conducted by the department’s Employee Benefits Security Administration (EBSA) found that Edler was not forwarding employee contributions and loan repayments to the plan as required under the Employee Retirement Income Security Act (ERISA).

“The Labor Department is committed to protecting the benefits of America’s workers and retirees,” said Bradford P. Campbell, assistant secretary of labor for EBSA. “We will not hesitate to act when plan fiduciaries fail to act in the best interests of plan participants and beneficiaries.”

In addition to the restitution, the default judgment, entered in the U.S. District Court for the Eastern District of Pennsylvania, removes Edler and the company as fiduciaries of the plan and permanently enjoins them from serving as trustees, fiduciaries, advisors or administrators to any ERISA-covered employee benefit plan. JM Pension Advisory Inc. of Derwood, Md., has been appointed as independent fiduciary for the plan with authority to liquidate it and distribute benefits to plan participants and beneficiaries.

Employers and workers can reach EBSA’s Philadelphia Regional 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 on the agency’s Web site at www.dol.gov/ebsa.

Chao v. Edler
Civil Action Number: 2:07-cv-379

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Archived News Release — Caution: Information may be out of date.