U.S. Department of Labor sues owner and chief operating officer of former Nashville, Tenn., mortgage banking business to protect pension funds

Nashville, TN - The U.S. Department of Labor has sued Mark Black, Tom Black and their former company, Synergy Holdings Inc. in Nashville, for allegedly violating the Employee Retirement Income Security Act (ERISA) by failing to administer the company's 401(k) plan.

The lawsuit alleges that the defendants breached their fiduciary responsibilities when they failed to terminate the company's 401(k) profit-sharing plan and distribute the assets to plan participants after the company ceased operations in 2006.

"The Labor Department will not allow fiduciaries to abandon pension plans and leave plan participants stranded without access to their funds," said R.C. Marshall, regional administrator in Atlanta for the department's Employee Benefits Security Administration (EBSA).

The suit, filed in the U.S. District Court for the Middle District of Tennessee in Nashville, asks that the court appoint an independent fiduciary at the defendants' expense to terminate the pension plan and distribution its assets.

Synergy Holdings Inc. was a retail mortgage banking company until it filed for bankruptcy. Mark Black was owner of the company and Tom Black served as chief operating officer and plan administrator. As of March 2008, the 401(k) profit-sharing plan had 13 remaining participants, the latest figure available.

Employers with similar problems who are not yet subjects of EBSA investigations may be eligible to participate in the department's Voluntary Fiduciary Correction Program. Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions, civil penalties, as well as any applicable excise taxes.

In fiscal year 2009, EBSA achieved monetary results of $1.3 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 Atlanta Regional Office at 404-302-3900 or toll-free at 866-444-3272 for help with problems relating to private sector retirement and health plans. For more information, see www.dol.gov/ebsa.

Solis v. Mark Black
Civil Action File Number 1:09-cv-00083

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