US Department of Labor obtains consent judgment to restore assets to benefit plan of defunct Clarks Summit, Pa., company

CLARKS SUMMIT, Pa. — The U.S. Department of Labor has obtained a consent judgment and order to restore $41,093 to the employee benefit plan of now-defunct Dalton Mechanical Services Inc., formerly located in Clarks Summit. The action resolves a lawsuit filed by the department in the U.S. District Court for the Middle District of Pennsylvania against the company and Scott Slocum, its president and co-owner. A default judgment also was entered against the company.

The suit followed an investigation by the Labor Department's Employee Benefits Security Administration, which found that Slocum had caused the company to retain contributions deducted from employees' paychecks, rather than deposit them into the plan. Slocum also directed that employee contributions be remitted late and without interest, and co-mingled plan assets with those of the company. These alleged violations of the Employee Retirement Income Security Act occurred from June 2006 to July 2007.

"We are thrilled that the contributions these workers made to the benefit plan are being protected," said Mabel Capolongo, director of EBSA's Philadelphia Regional Office, which conducted the investigation. "The Labor Department remains committed to holding irresponsible fiduciaries legally accountable when they fail to act in the best interest of plan participants."

The case was litigated by the Labor Department's Philadelphia Regional Solicitor's Office. Employers and workers can contact EBSA's Philadelphia office at 215-861-5300 or toll-free at 866-444-3272 for help with problems relating to private sector pension and health plans.

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

Solis v. Scott Slocum, Dalton Mechanical Services Inc. and Dalton Mechanical Civil SIMPLE IRA Plan
Civil Action Number: 3:09-cv-2490

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