U.S. Labor Department seeks distribution of 401(k) assets from Preferred Mortgage Group Inc. in Bedford, Ohio

Archived News Release — Caution: Information may be out of date.

Bedford, Ohio – The U.S. Department of Labor has filed suit in federal district court in Cleveland, asking the court to appoint an independent fiduciary to terminate the Preferred Mortgage Group 401(k) plan so that assets can be distributed to plan participants.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Joseph Menez, director of the department’s Cincinnati Regional Office of the Employee Benefits Security Administration (EBSA).

The lawsuit alleges that the plan’s administrator failed to take responsibility for terminating the plan and distributing its assets to beneficiaries and participants when the company ceased doing business. The Labor Department also alleges that Preferred Mortgage Group failed to obtain a fidelity bond as required by law.

The suit seeks to appoint an independent fiduciary to manage the plan, terminate it and distribute assets to eligible participants and beneficiaries. The plan has 24 remaining participants with assets totaling $13,745.37.

The suit resulted from an investigation conducted by EBSA’s Cincinnati Regional Office. Employers and workers can reach the office at 859.578.4680 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. Preferred Mortgage Group Inc.
Civil Action Number 08-cv-00352

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Archived News Release — Caution: Information may be out of date.