Labor Department seeks federal court judgment ordering distribution of 401(k) assets of Shaker Heights, Ohio business

Archived News Release — Caution: Information may be out of date.

Shaker Heights, Ohio - The U.S. Department of Labor has filed a lawsuit in Federal District Court, Cleveland, requesting the appointment of an independent fiduciary to terminate the FFS Inc. 401(k) retirement plan and to distribute plan assets to the participants.

The lawsuit asks that the Court remove the current fiduciary, Nagel Wealth Management Group Inc., and to cause a newly appointed fiduciary to obtain a fidelity bond for the plan.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Paul Baumann, acting director of the department’s Cincinnati regional office of the Employee Benefits Security Administration (EBSA).

The plan had three participants with account balances totaling $13,731 in assets as of the end of March 2008.

The lawsuit resulted from an investigation conducted by EBSA’s Cincinnati Regional Office. Employers and workers can reach the office at 859.578.4680 or toll-free at 866.444.3272 for help with problems relating to private sector retirement 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.

(Chao v. Nagel Wealth)
Civil Action No. 1:08-cv-02893

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Archived News Release — Caution: Information may be out of date.