U.S. Department of Labor sues executive of defunct Minneapolis company to protect participants of abandoned plan

Archived News Release — Caution: Information may be out of date.

Minneapolis – The U.S. Department of Labor has sued to appoint an independent fiduciary to administer and terminate the 401(k) plan of KSM Holding Corp., a defunct Minneapolis company.

“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,” said Steven Eischen, regional director of the department’s Employee Benefits Security Administration (EBSA) in Kansas City, Missouri.

The company established the plan in 1995 and managed it until 2002 when the company ceased operations. Since that time, the plan’s fiduciary has failed to distribute the remaining assets of the plan and to appoint a fiduciary to assume the responsibility for administering the plan. As a result, some plan participants and beneficiaries have been unable to access their individual account balances.

The lawsuit, filed in the U.S. District Court for the District of Minnesota, seeks to remove Daniel Larson, chief financial officer of KSM and a plan fiduciary, from his position as fiduciary, and appoint an independent fiduciary to terminate the plan and distribute its assets to participants and beneficiaries.

The suit resulted from an investigation conducted by EBSA’s regional office in Kansas City. Employers and workers can contact the office at 816.285.1800 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. KSM Holding Corp.
Civil Action Number xxxxxx

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.