U.S. Department of Labor sues defunct Wyckoff, N.J., company to protect participants of employee profit-sharing plan

Archived News Release — Caution: Information may be out of date.

Wyckoff, N.J. — The U.S. Labor Department has sued to obtain appointment of an independent fiduciary to oversee the employee profit-sharing plan of Jules Prosnitz & Sons Inc., formerly doing business as “Prozy’s Army-Navy Store,” a defunct company located in Wyckoff.

“We filed this case to protect the participants who entrusted their savings to the trustees of the plan,” said Jonathan Kay, regional administrator of the department’s Employee Benefits Security Administration (EBSA) in New York.

The company ceased operations in February 2005. Since that time, Jules Prosnitz & Sons 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. It is believed that the plan has five participants.

The complaint, filed in the U.S. District Court for the District of New Jersey, seeks to appoint an independent fiduciary to terminate the plan and distribute its assets to participants and beneficiaries.

As of December 2007, the latest data available, the plan had approximately $110,178 in assets.

The suit resulted from an investigation conducted by EBSA’s regional office in New York. Employers and workers can contact the office at 212.607.8600 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 $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. Prozy’s Employees Profit Sharing Plan
Docket Number: 08-cv-4616

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Archived News Release — Caution: Information may be out of date.