U.S. Department of Labor sues president of defunct western Pennsylvania company to recover 401(k) retirement contributions

Pittsburgh – The U.S. Department of Labor has sued Patrick P. Bane, president of defunct Comtel Communications, to recover employee contributions owed to the company’s 401(k) retirement plan.

The lawsuit, based on an investigation conducted by the department’s Employee Benefits Security Administration (EBSA), alleges that Bane and Comtel Communications violated the Employee Retirement Income Security Act (ERISA) when they failed to deposit into the plan employee contributions deducted from employees’ pay in 2008, and to maintain the funds in a plan trust account.

“Plan fiduciaries have a legal responsibility to protect the interests of plan participants by properly managing the assets entrusted to them,” said Mabel Capolongo, director of EBSA’s Philadelphia Regional Office. “We will take action to hold accountable those who violate that trust.”

Filed in the U.S. District Court for Western Pennsylvania, the complaint seeks to restore the funds to the plan, remove Bane and the company as fiduciaries for the plan, prevent Bane and the company from ever serving as fiduciaries or trustees to an ERISA-covered plan in the future, and appoint an independent fiduciary with authority over plan administration and disposition of plan assets.

The company sold cellular phones, paging equipment and related services throughout western Pennsylvania until it ceased operations in May 2008. In a separate legal action, the department filed an adversary complaint in the U.S. Bankruptcy Court for the Western District of Pennsylvania to prevent Bane from discharging the alleged debt he owes the 401(k) plan under Chapter 7 bankruptcy proceedings filed March 18, 2009.

Employers and workers can reach EBSA’s Philadelphia office at 215.861.5300 or toll-free at 866.444.3732 for help relating to private sector retirement and health plans.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families. Information on EBSA is available from the agency’s Web site at www.dol.gov/ebsa.

Solis v. Patrick P. Bane
Civil Action Number 2:09-cv-01121-RMC

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