U.S. Labor Department obtains court-appointed independent fiduciary for 401(k) plan abandoned by New York City company

Archived News Release — Caution: Information may be out of date.

New York – The U.S. Department of Labor has obtained a court order appointing an independent fiduciary to manage the abandoned 401(k) plan of the defunct Chelsea Voice & Data Inc. of New York City.

The order, entered in the U.S. District Court for the Southern District of New York, appoints Jacqueline M. Carmichael as the independent fiduciary of the abandoned plan. The independent fiduciary has authority to manage the plan, distribute its assets to the participants and beneficiaries, and terminate the plan.

The Chelsea Voice & Data Inc. 401(k) Plan, also known as the Chelsea Voice & Data doing business as South Shore Communications 401(k) Plan, was sponsored by the company until about July 2004. At that point, Paul M. Henry, the owner of the company and the sole trustee and fiduciary to the plan, ceased operating both the company and the plan.

As a result, former employees were unable to access their 401(k) accounts. Under the Employee Retirement Income Security Act, employee benefit plans must be managed by named fiduciaries. In the absence of a plan fiduciary, participants and beneficiaries cannot obtain plan information, make investments or collect retirement benefits. ING is the custodian of the known assets of the plan.

“Workers who invest in a 401(k) plan have a right to see that their plan is administered properly, continually and for their benefit only,” said Jonathan Kay, regional director in New York for the Labor Department’s Employee Benefits Security Administration (EBSA). “This legal action paves the way for the plan’s participants to receive the benefits due them.”

The suit resulted from an investigation by EBSA’s regional office in New York City. 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 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. Chelsea Voice & Data Inc. 401(k) Plan
Civil Action Number: 08-CV-5407 (DLC)

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Archived News Release — Caution: Information may be out of date.