U.S. Department of Labor sues defunct West Chester, Pennsylvania company to protect participants of abandoned retirement plan

Archived News Release — Caution: Information may be out of date.

West Chester Pennsylvania – The U.S. Department of Labor has filed suit to have an independent fiduciary appointed to oversee the 401(k) plan of Five Star Industrial Services Inc., a defunct company located in West Chester, Pennsylvania.

“We filed this case to ensure that the plan participants are able to recoup the money they entrusted to the plan for their retirement savings,” says Mabel Capolongo, regional administrator of the department’s Employee Benefits Security Administration (EBSA) in Philadelphia.

The company established the plan in 1985 and managed it until 1995 when the company ceased operations. Since that time, Five Star has not taken fiduciary responsibility for the operation and administration of the plan and its assets, nor has it appointed anyone to assume that responsibility. As a result, plan participants and beneficiaries have not been able to access their individual account balances.

The complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, seeks to remove Five Star from its position as plan fiduciary and appoint an independent fiduciary to terminate the plan and distribute plan assets to participants and beneficiaries.

As of February 20, 2008, the plan had nine participants and approximately $16,076 in assets.

The suit resulted from an investigation conducted by EBSA’s regional office in Philadelphia. Employers and workers can contact the office at 215.861.5300 or toll-free at 866.444.3272 for help with problems relating to private sector pension and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Additional information can be found at www.dol.gov/ebsa.

Chao v. Five Star Industrial Services Inc., et. al
Civil Action No: 08-cv-4073

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Archived News Release — Caution: Information may be out of date.