U.S. Department of Labor secures more than $117,000 for participants of Ligonier, Pennsylvania 401(k) plan

Archived News Release — Caution: Information may be out of date.

Ligonier, Pennsylvania – William R. McAnulty, trustee of the E.R. Caldwell Land Clearing Contractors Inc.’s 401(k) Profit Sharing Plan in Ligonier has agreed to restore $117,477 to the plan to resolve a lawsuit filed by the U.S. Department of Labor.

The suit was filed in the U.S. District Court for the Western District of Pennsylvania following an investigation by the department’s Employee Benefits Security Administration (EBSA) that disclosed multiple violations of the Employment Retirement Income Security Act (ERISA). From December 2002 to February 2003, McAnulty and the company violated ERISA when assets were transferred from the plan’s investment account to corporate accounts.

“Plan fiduciaries have a responsibility to ensure that the assets of the plan are used solely to benefit participants,” said Mabel Capolongo, director of EBSA’s Philadelphia Regional Office. “Theft of employee benefits assets jeopardizes the benefits of workers and will not be tolerated.”

A consent judgment entered by the court orders the payment of $117,477 as restitution to the plan. The defendant will make installment payments over the next five years. If the defendant misses a payment, the entire balance will become due and payable immediately to satisfy the order. In addition to restoring plan funds, the judgments remove McAnulty and the company as the fiduciaries for the plan, prevent McAnulty and the company from ever being fiduciaries or trustees in the future, and appoints Metro Benefits Inc. as an independent fiduciary with authority over plan administration and disposition of plan assets.

In a separate criminal case, McAnulty pled guilty to theft from an employee benefit plan in December 2007. On May 2, 2008, he was sentenced to two years of probation on his conviction and ordered to restore $29,660 in restitution to the plan.

Employers and workers needing help with problems related to private sector retirement and health plans can reach the regional office at 215.861.5300 or they may call EBSA’s toll-free at 866.444.3272.

In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health plans and other benefits for millions of American workers and their families. Information on EBSA is available from the agency’s Web site at www.dol.gov/ebsa.

Chao v. William R. McAnulty
Civil Action Number: 06-01306

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 (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department 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.