US Labor Department recovers $50,656 for participants in Gilroy, Calif. 401(k) profit sharing plan

Date of Action: February 8, 2013

Type of Action: Order Granting Motion to Appoint Independent Fiduciary

Name(s) of Defendant: Michael D. Williams, Trustee to the Power & Data Technology, Inc. 401(k) Profit Sharing Plan

Allegations: Power & Data Technology, Inc. 401(k) Profit Sharing Plan is a defined contribution employee benefit plan established in 1995.  The plan was sponsored by Gilroy, Calif.-based Power & Data Technology, Inc., which ceased operations in 2001.  The company and Michael D. Williams engaged in prohibited transactions and failed to administer the plan.

As of January 31, 2013, the plan had 15 participants and assets of $23,075.

Resolution: The order removes Williams as a plan trustee and appoints Victor Yaneza (Yaneza) as the plan’s independent fiduciary.  As independent fiduciary, Yaneza is responsible for the administration of the plan, distributing the plan’s assets to eligible participants and beneficiaries, and terminating the plan. The court further ordered Williams to restore $50,655.71 to the plan, which includes amounts under an earlier default judgment and interest.

Court: U.S. District Court, Northern District of California, San Jose Division

Docket Number: 5:08-cv-05643

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.