U.S. Department of Labor sues defunct Clarks Summit, Pennsylvania, company to recover benefit plan assets

Clarks Summit, Pennsylvania – The U.S. Department of Labor has sued Dalton Mechanical Services Inc. and its president and co-owner, Scott Slocum, for failing to deposit employee contributions into the company’s employee benefit plan in violation of the Employee Retirement Income Security Act (ERISA).

The lawsuit alleges that between June 2006 and July 2007, Slocum caused the company to retain contributions deducted from employees’ paychecks, rather than deposit the money into the benefit plan. Slocum also directed that the employee contributions be remitted late and without interest, and co-mingled plan assets with those of the company.

“The Labor Department is committed to holding plan fiduciaries accountable when plan assets are misused,” said Mabel Capolongo, director of the Philadelphia Regional Office of the department’s Employee Benefits Security Administration (EBSA). “Fiduciaries have a responsibility to protect the benefit plans of workers.”

The suit seeks a court order to recover plan assets from Slocum and the company, plus interest or lost opportunity costs; remove them as plan fiduciaries; and permanently bar them from serving in a fiduciary capacity in the future to any employee benefit plan covered by ERISA.

The suit, filed in the U.S. District Court for the Middle District of Pennsylvania, resulted from an investigation conducted by EBSA’s Philadelphia Regional Office. Employers and workers can reach that office at 215.861.5300 or toll free at 866.444.3272 for help with problems relating to retirement and health benefits. 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.

Solis v. Dalton Mechanical Inc.
Civil Action Number: 09-CV-2490

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