U.S. Department of Labor sues trustee of abandoned IXP Inc. 401(k) plan in Fruita, Colo.

Denver – The U.S. Department of Labor has filed a lawsuit in federal district court in Denver against the former president and owner of IXP Inc., Fruita, Colo., for abandoning the company's 401(k) plan as its trustee after the company ceased operations in January 2009. IXP Inc. installed gasoline distribution pipelines.

The suit alleges that Carl N. France violated the Employee Retirement Income Security Act when he failed to administer the 401(k) plan after the company ceased to operate, thereby depriving participants of their retirement benefits.

"When an employee benefit plan is abandoned, so are the workers who invested in it," said Steve Eischen, regional director of the department's Employee Benefits Security Administration's regional office in Kansas City, Mo. "We took this legal action so the plan will be properly managed and its participants can access the funds that rightly belong to them."

The suit asks the court to appoint GTrust of Topeka, Kan., to serve as the independent fiduciary in order to terminate the plan and distribute its remaining assets to participants. As of Sept. 29, 2009, the 401(k) plan had 21 participants and assets totaling $104,216.02.

The suit resulted from an investigation by EBSA's Kansas City Regional Office. Employers and workers can contact that office at 816.285.1800 or toll-free at 866.444.3272 for help with problems relating to private sector pension and health plans.

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. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. France
Civil Action No. 10-cv-00559-ZLW-MJW

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