U.S. Labor Department sues to appoint independent fiduciary to manage abandoned 401(k) plan of former Denver-area employer

Denver — The U.S. Department of Labor has obtained a consent judgment in the U.S. District Court for the District of Colorado appointing an independent fiduciary to oversee the abandoned 401(k) plan of the defunct Denver Window Corp., formerly of Commerce City, Colorado.

The judgment, filed simultaneously with a lawsuit, alleges that Daniel Nechrony, the plan trustee and owner of the company, failed to accurately and completely distribute assets of the plan and file required Form 5500 reports after the company ceased operations in April 1998, as required by the Employee Retirement Income Security Act. The suit also alleges that Nechrony violated a 2008 settlement agreement with the Labor Department.

The judgment orders the removal of Nechrony as the plan’s trustee and appoints Larry Lefoldt/Lefoldt & Company, P. A. as the independent fiduciary to administer the plan. As of January 31, 2007, the plan had 13 participants and assets totaling $35,706.31.

“Workers should know that they can turn to the Labor Department for assistance when they find themselves in this type of situation,” said Steven Eischen, director of the Kansas City Regional Office of the department’s Employee Benefits Security Administration (EBSA). “We took this legal action to ensure that the plan is properly managed so that these participants can finally gain access to their retirement assets.”

This case resulted from an investigation conducted by EBSA’s office in Kansas City, Mo. Employers and workers can reach EBSA’s Kansas City office at 816.285.1800 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2008, the Labor Department achieved monetary results of $1.2 billion in pension, 401(k), health and other benefits for millions of American workers and their families.

Solis v. Daniel Nechrony & Denver Window Corp. 401 (k) Plan
Civil Action Number 09-cv-01468-REB-KLM

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