U.S. Labor Department sues to appoint independent fiduciary for retirement plan abandoned by Minneapolis-area employer

Archived News Release — Caution: Information may be out of date.

Minneapolis – The U.S. Department of Labor has filed a lawsuit in the U.S. District Court in Minneapolis to appoint an independent fiduciary to oversee the Nat Joseph Catering Inc. 401(k) Plan.

The department’s suit alleges that Nat Joseph Catering Inc., which ceased operating in November 2004 when the company filed for Chapter 11 bankruptcy protection in Minneapolis, abandoned the plan. The company also allegedly violated the Employee Retirement Income Security Act (ERISA) by failing to ensure that more than $29,000 in plan assets was distributed to the eight plan participants. The suit seeks to remove plan trustee Burton Joseph, who was the sole owner of Nat Joseph Catering Inc., and appoint an independent fiduciary to distribute the plan’s assets.

“The department acts quickly to help workers get their benefits when plan assets are either misused or the plans are abandoned,” said Steve Eischen, regional director in Kansas City, Missouri, for the Labor Department’s Employee Benefits Security Administration (EBSA), which investigated the case.

Retirement plans become orphan plans when they are abandoned by all fiduciaries designated to manage and operate them and their assets. As a result of the abandonment, participants and beneficiaries are unable to communicate with the plan fiduciary or obtain distributions from their accounts.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Kansas City Regional Office at 816.426.5131 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

Chao v. Burton Joseph and Nat Joseph Catering Inc., 401(k) Plan
Civil Action Number: 0:09-cv-00027-MJD-FLN

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