US Labor Department sues defunct Grove City, Ohio-based Alliance Excavating and owner to distribute assets from company's retirement plan

COLUMBUS, Ohio – The U.S. Department of Labor has sued Alliance Excavating Inc. of Grove City and the defunct company's owner, James Sowers, for allegedly failing to administer and terminate the Alliance Excavating Inc. 401(k) Profit Sharing Plan and Trust, in violation of the Employee Retirement Income Security Act.

Filed in U.S. district court in Columbus, the suit alleges that Sowers has prevented qualified participants from obtaining distributions of their individual account balances since the company ceased operations in 2007. As of Nov. 11, 2009, the plan had 10 participants and assets totaling $5,977, the latest data available.

"Our legal action underscores the Labor Department's commitment to hold accountable those who are entrusted with the assets of workers' retirement plans," said Paul Baumann, director of the Cincinnati Regional Office of the department's Employee Benefits Security Administration. "We will continue to help workers obtain their rightful benefits when plan fiduciaries fail to do so."

The suit seeks a court order to remove Alliance Excavating and Sowers as plan fiduciaries and appoint an independent fiduciary to distribute the plan's assets to qualified participants as well as to terminate the plan. It also seeks to permanently bar the company and Sowers from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan in the future.

EBSA protects the retirement, health and other workplace-related benefits of America's workers, retirees and their families. The agency oversees approximately 708,000 private sector retirement plans, 2.8 million health plans and other plans that provide benefits to more than 150 million Americans. Collectively, these plans hold more than $6 trillion in assets.

The investigation was conducted by EBSA's Cincinnati office. Employers and workers can reach that office at 859.578.4680 or toll-free at 866.444.3272 for help with problems related to private sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.

Solis v. Sowers, Alliance Excavating Inc. 401(k) Profit Sharing Plan and Trust
Civil Action Number: 2:11-cv-00349

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