US Labor Department sues defunct Weehawken, NJ, company to distribute more than $2 million in assets from company’s retirement plan

WEEHAWKEN, N.J. – The U.S. Department of Labor has sued Weehawken-based Worldwide Trade Resources Inc. for failing to administer and terminate the defunct company’s 401(k) plan, in violation of the Employee Retirement Income Security Act. As of Jan. 31, the plan had 52 participants and assets totaling $2.2 million, the latest data available.

Filed in the U.S. District Court of New Jersey, the suit alleges that Worldwide Trade Resources Inc. ceased operations on or around October 2010 and did not provide for the distribution of individual account balances. 

“We took this action to protect the participants who entrusted their retirement savings to this plan,” said Jonathan Kay, director of the New York 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 appointing an independent fiduciary to distribute the plan’s assets and terminate it.

EBSA protects the retirement, health and other workplace-related benefits of America’s workers and retirees, and their families. The agency oversees approximately 708,000 private sector retirement plans, 2.8 million health plans and a similar number of other benefit plans that cover more than 150 million Americans.

The investigation was conducted by EBSA’s New York Regional Office. Employers and workers can reach that office at 212-607-8600 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 of Labor v. Worldwide Trade Resources Inc. 401(k) Plan
Civil Action Number: 11-cv-06104

U.S. Department of Labor news 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.