U.S. Department of Labor obtains judgments against fiduciaries of defunct North Carolina testing laboratory

Atlanta – The U.S. Department of Labor has obtained court judgments restoring $97,317.49 to the Triangle Laboratories Inc. Retirement Fund in Durham, North Carolina.

A lawsuit, filed in the U.S. District Court for the Middle District of North Carolina, alleged that Joseph Morales and four other defendants failed to discharge their fiduciary duties to the 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA).

“When fiduciaries fail to act in the best interests of plan participants, the Labor Department will vigorously enforce federal laws that protect the rights of employees to their retirement funds,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration (EBSA) office in Atlanta.

Following a trial, the court ordered Joseph Morales to restore $54,317.49 to the retirement fund. The department obtained a consent judgment against J. Ronald Hass barring him from serving as a fiduciary. In separate judgments, defendant Donald Harvan was required to restore $25,000 to the plan, while Debbie Monaghan and Craig Stoke were ordered to restore $9,000 to the 401(k) plan. In addition, all of the defendants are barred in the future from serving as fiduciaries to any employee benefit plan governed by ERISA.

Triangle Laboratories, which filed for bankruptcy in 2004, provided environmental and pharmaceutical testing services. In March 2008, the court appointed Jeanne Bryant as independent fiduciary to oversee the plan’s assets.

The case was investigated by EBSA’s Atlanta Regional Office. Employers and workers can reach that office at 404.302.3900 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. For more information, see www.dol.gov/ebsa.

Chao v. Triangle Laboratories
Civil Action File Number 1:06-CV-363

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