Court orders San Jose, California, company to restore more than $46,000 in retirement assets owed to former workers

San Francisco – The U.S. Department of Labor has obtained a default judgment restoring more than $46,000, including interest, to participants of a 401(k) profit-sharing plan of now-defunct Power & Data Technology of San Jose, California. The judgment resolves a lawsuit against the company and its former president, Michael D. Williams of Gilroy, California, over losses that resulted from mismanagement and misuse of plan assets.

“The Labor Department is committed to protecting the benefits of America’s workers and retirees,” said Billy Beaver, regional director of the department’s Employee Benefits Security Administration office in San Francisco. “Access to their retirement savings is critical to the future of these individuals and their families.”

The suit, filed during December 2008 in the U.S. District Court for the Northern District of California, alleged that the company and Williams violated the Employee Retirement Income Security Act when they abandoned the 401(k) plan after the company ceased doing business in June 2001. Thirteen former employees were left unable to access their plan accounts. The company manufactured and distributed electrical components.

Under the judgment, the court orders the defendants to restore $39,326 in losses to the plan, plus $6,865 in pre-judgment interest from lost opportunity costs through January 15, 2010. The court also orders removal of the defendants as plan fiduciaries, that Williams be permanently barred from future service to plans governed by ERISA, and appointment of an independent fiduciary, to be paid for by Williams, to manage the plan.

Employers and workers with questions or concerns regarding their private sector pension and health plans can contact EBSA’s San Francisco Regional Office at 415.625.2481 or toll-free at 866.444.3272. Information is also available on the agency’s Web site at http://www.dol.gov/ebsa. In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to 401(k), health and other benefits for millions of American workers and their families.

Solis v. Michael D. Williams and Power & Data Technology Inc., 401(k) Profit-Sharing Plan
Civil Action Number: CV 5:08-CV-5643

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