US Department of Labor obtains judgment in Solis v. Alliance, providing for termination and distribution of the assets of the Alliance Excavating, Inc. 401(k) Profit Sharing Plan in Grove City, Ohio

Date of Action:  Aug. 29, 2011

Type of Action:  Consent order and judgment

Names of Defendants: Alliance Excavating, Inc. and James Sowers, individually and as a fiduciary to the Alliance Excavating, Inc. 401(k) Profit Sharing Plan

Allegations: Sowers, in his capacity as a fiduciary to the Plan failed to ensure that qualified participants were able to obtain distributions of their individual account balances after the company ceased operations in 2007.

Resolution: The court ordered Sowers and Alliance Excavating, Inc., formerly located in Grove City, Ohio, removed as fiduciaries of the Plan.  Additionally, the court appointed Summit Benefit Solutions, Inc. as an independent fiduciary to distribute $5,977 in assets from the orphaned Plan to 10 former employees of the company.  The consent order and judgment gives the independent fiduciary authority to distribute assets to participants and beneficiaries before terminating the Plan. 

Sowers is also permanently enjoined from serving or acting as a fiduciary or service provider with respect to any employee benefit plan subject to the Employment Retirement Income Security Act.

Court: Southern District of Ohio, Eastern Division, Columbus, Ohio

Docket Number: 11-cv-349

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U.S. Department of Labor materials are accessible at www.dol.gov.  The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.