U.S. Labor Department sues corporate officers of defunct West Chester, Pennsylvania, company to protect pension plan participants

West Chester, Pennsylvania — The U.S. Department of Labor has sued defunct Reneuxit Inc. of West Chester, Mark D. Dampman and Wayne K. Hall for making improper loans and transfers from the company’s pension plan in violation of the Employee Retirement Income Security Act.

Dampman is a former corporate officer and trustee of the pension plan and Hall is the current plan trustee and was a corporate officer until the company ceased operations in January 2007.

The suit alleges that from February 15 through June 26, 2006, Dampman illegally transferred funds from the plan in the form of loans to himself and an employee, despite the fact that plan documents specifically prohibited loans to participants. Illegal transfers also were made to Dampman’s personal bank accounts and other company accounts. The suit further alleges that when Hall became aware of the transfers, he took no action to restore the funds to the plan.

“The defendants clearly abused their authority as plan trustees by showing no regard for the participants they were legally obligated to protect,” said Mabel Capolongo, regional administrator of the Labor Department’s Employee Benefits Security Administration in Philadelphia, Pennsylvania. “When plan fiduciaries fall short of this obligation, they will be held accountable.”

Filed in the U.S. District Court for the Eastern District of Pennsylvania, the suit seeks to restore to the plan all losses and opportunity costs, remove the defendants as plan fiduciaries, appoint an independent fiduciary to administer the plan and permanently enjoin Dampman, Hall and Reneuxit Inc. from serving directly or indirectly as fiduciaries to any employee benefit plan covered by ERISA.

The department’s legal action resulted from an investigation by EBSA’s Philadelphia Regional Office. Employers and workers can contact that office at 215.861.5300 or toll-free at 866.444.3272 for help with problems relating to private sector pension and health plans.

In fiscal year 2009, the department achieved monetary results of $1.3 billion in pension, 401(k), health and other benefits for millions of American workers and their families. Additional information can be found at www.dol.gov/ebsa.

Solis v. Dampman
Civil Action Number: 10-4094

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